Muno plc is a Zimbabwean manufacturing company who are considering expansion into the UK. They have been looking at a possible factory site in the Midlands area in England This factory will be rented. Before use, it will need to be fitted out with machinery, which has an initial cost of 990,000. The machinery will have a residual value of 22,000, Sales revenue - 250,000, increasing by 9.5% each year Running costs 7000, increasing by 12.5% each year. Factory rent 5000 per year. This value will remain the same throughout the contract. The company has a current cost of capital of 10%. Muno use a template for their calculations and this can be found on the link below; Capital Budgeting Template (click to download) a) Calculate the NPV (Net Present Value) of the new machine. Round off your answer to the nearest whole number with no sign. If the number is a negative value, include the minus sign e.g. - 100000 Make use of the template provided above and do not round off your calculations until the final answer. ol X Year o 1 Year 1 2 Year 2 3 Year 4 Year 4 5 Years Sales RV 6 Year 6 IN Machine Cost Costs OUT Net Cashflows Discount Factor Present Value OX 1.00 1.00 1.00 1.00 1.00 1.00 NPV REJECT 0 1 2 4 5 Payback 6 Net Cashflows Cumulative Payback Years Months Make use of the template provided above and do not round off your calculations until the final answer Year 0 Year 1 Year 2 Year 3 Year 4 Years Sales Investment Residual Value Running Kosts Other Expenses Net Cashflows Discount Factor Present Value Net Present Value Decision Choose Net Present Value Decision Choose... b) Calculate the payback period for the new machine. Choose... - Years Choose... months