Exercise 2. Your proposed investment has forecast the following capital, sales and operating costs given below. Capital may be depreciated over 10 years on a straight line basis. Tax is assessed at 30 % of net profits after tax. The real discount factor is 5%. (a) Assuming a unit sale price of $AUD 1 per unit, determine: i. What is the tax payable in Year 3? Express as a single number. ii. What is the net after tax cash flow in Year 4? Express as a single number. iii. What is the NPV of this project? (b) What is the break-even price per unit? 0 1 2 3 4 to 25 Year Capital ($AUD) Annual sales (units sold) (60,000) 15,000 22,000 25,000 27,000