2. "SwissChocs SA has decided that they need to create a new product line to compete efficiently. In order to do so, they will need to raise capital via a bond issue. Assuming the following information: Debt information: Amount raised 1,000,000 at 12% for a period of 6 years and interest to be paid annually. Principal to be paid at the end period. Product Information: Capital requirement of 1,100,000. Expected to return 200,000 in year 1, with additional 15% increment growth per annum compounded till year 6 (ie. the product will earn 15% more than the previous year, year on year) (a) What is the NPV of the cash flows? (b) Should the Company invest in the new product? Why or Why not?" ww SwissChocs SA now has the opportunity to pay off the debt yearly with a principal payment reduction of 150000 per annum, and a final payment of 250,000 in year 6. Assuming that the Project cash flows remain the same (c) What is the new NPV of the cash flows? (d) Should you take this new option of payment reduction? Why or why not?