FTG commissioned a study to look into the feasibility of changing the packaging of the fruit from cans to sealed bags. The Consultant charged $45000 for the report. The report concluded that the new packaging will Increase sales and reduce some operating costs. The new packaging machinery will cost $1300000. The new machine is expected to last 5 years. The Taxation Office advise the life of the machine, for tax purposes, is 6 years. The old canning machinery was purchased 3 years ago for $900000 and was being depreciated at $150000 and will be for the next 3 years. The old machine could be sold today for $230000. In 5 years it will be worth nothing Installing the new machine will require staff training (a tax deductible expense) of $35000 before production can commence. Due to the lower cost of the bags Inventory required will be reduced by $100000 for the life of the project. The new sales of bagged fruit is expected to be $950000 in Year 1 rising by 20% for 3 years then 0% for the rest of the life of the project. Variable Costs associated with the new packaged fruit are 40% of sales. Canned fruit production will be discontinued. Sales of canned fruit were static at $400000 with variable costs of $200000 (50% of Sales). The new equipment is very hi-tech. Maintenance costs are expected to be higher at $40000 per year. Maintenance costs on the old machine were $34000 per year. The lighter packaging will reduce annual freight cost significantly from $250000 to $140000 per year. Fixed costs are expected to remain at $450000 per year. At the end of the project the new machinery can be sold for $310,000. 5. The NPV of the project (5Marks) 6. The IRR of the project (5Marks) 7. The Pl of the project (5Marks) 8. The payback of the project (5Marks) 9. A brief recommendation (5Marks)