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;