GOOD TYRES, INC. After extensive research and development, Good Tyres, Inc., has recently developed a new tyre, the Super X1, and must decide whether to make the investment necessary to produce and market it. The tyre would be ideal for drivers doing a large amount of wet weather and off-road driving in addition to normal freeway usage. The research and development costs so far have totalled about RM10 million. The Super X1 would be put on the market beginning next year, and Good Tyres expects it to stay on the market for a total of four years. Test marketing costing RM5 million has shown that there is a significant market for a Super X1-type tyre. As a financial analyst at Good Tyres, you have been asked by your CFO, Adam, to evaluate the Super X1 project and provide a recommendation on whether to go ahead with the investment. Except for the initial investment that will occur immediately, assume all cash flows will occur at year-end. Good Tyres must initially invest RM140 million in production equipment to make the Super X1. This equipment can be sold for RM54 million at the end of four years. Good Tyres intends to sell the Super X1 to two distinct markets: 1. The original equipment manufacturer (OEM) market: The OEM market consists primarily of the large automobile companies (like Proton) that buy tyres for new cars. In the OEM market, the Super X1 is expected to sell for RM38 per tyre. The variable cost to produce each tyre is RM22. 2. The replacement market: The replacement market consists of all tyres purchased after the automobile has left the factory. This market allows higher margins; Good Tyres expects to sell the Super X1 for RM59 per tyre there. Variable costs are the same as in the OEM market. Good Tyres intends to raise prices at 1 percent above the inflation rate; variable costs will also increase at 1 percent above the inflation rate. In addition, the Super X1 project will incur RM26 million in marketing and general administration costs the first year. This cost is expected to increase at the inflation rate in the subsequent years. Good Tyres's corporate tax is 40 percent. Annual inflation is expected to remain constant at 3.25 percent. The company uses a 15.9 percent discount rate to evaluate new product decisions. Automotive industry analysts expect automobile manufacturers to produce 5.6 million new cars this year and production to grow at 2.5 percent per year thereafter. Each new car needs four tyres (the spare tyres are undersized and are in a different category). Good Tyres expects the Super X1 to capture 11 percent of the OEM market. Industry analysts estimate that the replacement tyre market size will be 14 million tyres this year and that it will grow at 2 percent annually. Good Tyres expects the Super X1 to capture an 8 percent market share. The appropriate depreciation schedule for the equipment is the seven-year MACRS depreciation schedule. The immediate initial work capital requirement is RM9 million. Thereafter, the net working capital requirements will be 15 percent of sales. Required: Based on information given above, calculate the Net Present Value (NPV), payback period, discounted payback period, Internal Rate of Return (IRR), and Profitability Index (PI) on this project. please do in step by step calculation Should Good Tyres proceed with Super X1? Justify your answer. answer must be in long