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Open company already invested Tsh 5 0 mil in research to have ABC prototype product. Project will involve spend Tsh 8 0 0 mil to

Open company already invested Tsh 50mil in research to have ABC prototype product. Project will involve spend Tsh 800mil to acquisition plant and machinery and will be shipped at cost of Tsh 60mil while installation and commission cost is estimated Tsh 150mil. Company take advantage own warehouse. However warehouse is rented out to other company annual Tsh 100Mil. The company will also incur net working investment Tsh200mil, initially. Plant will have a useful life of 5years, at the end of which plant will be sold and estimate to ferch Tsh 350Mil. If project successfully launched it will contribute additional annua cash flow Tsh 1500mil. The company will also spend annual Tsh 700mil in operating cost other than deprecion , interest and tax. Furthermore project will inject Tsh 120 annual for two years as additional working capital at the end o 2 and 33 years respectively. the effective rate tax is 25% payable in the same year revenueis earned and the rate is not expected to change over the project life. Plant and machinery will be depreciation at rate 30% using reducing balance method. Using spreadsheet calculate NPV and present answer in excel sheel

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