NB: ROUND OF UNITS, HOURS, AND TOTAL COSTS TO 3 DECIMAL. PALCES. QUESTION 2 125 marks] A. Mandla Ltd is considering introducing a new product, which will require an investment of R30 million in new plant and machinery. The project has an economic life of four years. The net operating before tax cash flows and the required levels of working capital per year are set out in the following table. The investment in working capital occurs at the beginning of each year but the net cash flows occur at the end of each year. The weighted average cost of capital is 11%. The residual value of the plant and machinery at the end of year 4 is expected to be R10 million. The tax rate is 28%. SARS will permit the firm to depreciate the new machinery at 20% per year on a straight-line basis. Required: Calculate the NPV of the project. NB: ROUND OFF FACTOR'S TO 3 DECIMAL PLACES AND TOTAL COSTS TO THE NEAREST FIGURE