In keeping with its plans for expansion, the company is appraising the production and sale of a new designer

energy drink. This would involve the acquisition of a new machine with a purchase price of R$1600000$ which

is expected to have a useful life of six years and a salvage value of R$200000.$ The installation cost of the

machine is R$100000.5000$ units are expected to be sold annually. The net profit is expected to be R$30$ per

unit. The straight$-$line method of depreciation is used by Colatonic Ltd$.$ The company$$s cost of capital is $16\%.$

If approved, the implementation date would be $02$ January $2025.$