Eloise Tan (a student) recently received a digital SLR camera for her 18th birthday. Over the summer months she has been busy experimenting with the lenses and taking photos of Brisbane attractions such as the Brisbane River, the Gabba, Southbank, Suncorp Stadium and the Brisbane CBD. A friend has recommended that with a little more work on her technique perhaps she could sell her photos. She has decided that the best idea and location would be the Sunday market at Southbank. She has set herself a goal of saving $20 000 over a five-year period. To improve her technique, Eloise feels she needs to do a course at a local TAFE which will cost $6000. She also will need to purchase a new ultrawide 1235 mm lens costing $3000 and a tripod costing $1500. She thinks she can make $31 200 each year after all costs (e.g. rent of stall, materials, transport, printing and framing) are paid. After five years of selling photos, she hopes to go overseas with her savings of $18 000 and sell all her photography equipment for about $4000.

a. What is the PP for producing the photos and selling them at markets?

b. If Eloise allows herself $24 000 in wages and she could earn 9 per cent elsewhere on these funds, what is the NPV for the project?