In January 2020, right after the outbreak of the Covid-19 virus, Mr. and Mrs. Nice noticed the surging demand for hand sanitizers. As former chemists, they wondered if they could use ethanol to produce "home-made" hand sanitizers to help slow the spread of the virus and make some money. They paid a consultant $1,000 and obtained some information related to the business. The consultant estimated the total initial investment to be around $15,000 which can be depreciated over the next two years using a straight-line method (that is depreciation is $7,500 in each of the next two years). They also needed to set aside S10,000 for net working capital over the next two years. They planned to close the business after two years, because they expected vaccines to come out by the end of 2021. Mr. and Mrs. Nice estimated the total earnings before interest and taxes (EBIT) to be around 580,000 per year. However, in order to start the business Mr. Nice would have to quit his part-time job and lose an after-tax annual salary of S50,000. The business would face a tax rate of 30%. Mr. and Mrs. Nice discounted future cash flows at 10% per year. a. Please complete the working table below. Year 1 Year 2 EBIT 80,000 1 80,000 Taxe Depreciation Change in NWCH Investment Other CF (if any) Total CF- om A b. Please calculate the NPV and payback period of this business. ttttttttt c. Based on the numbers in (b), would the hand sanitizer business be financially beneficial for the Nice Family