Over the past two years Salinex Limited has designed & developed a new form of solar panel capable of powering domestic appliances. It has so far spent 3 million on research and development. Normally Salinex would manufacture its own products however on this occasions it is faced with the choice between manufacturing the unit in house or agreeing to sell the rights to a large multinational organisation. Salinex can start manufacturing the unit next January. In order to do so, it will have to spend 3 million on new plant as well as a further 1.5 million on other requirements before the end of the year. Also fixed and variable costs in 2010 are expected to be 2.25 million and 50 per unit respectively. Both of these costs are expected to rise by 8% each year. In licensing out the technology, Salinex will immediately receives a once off payment 5.0 million together with a royalty fee of 5.00 per unit sold. From the research carried out it is expected that the life of the product is six years when advancements in technology will displace it. It is expected to generate sales of 90,000 per year with a varying sales price as shown in table below. 2016 125 2017 125 2018 120 2019 120 2020 115 2021 115 Sales Price per unit (1) Based on the data provided and using a discount factor of 12% determine the net present value of each option. Use present value tables where necessary. (2) Consider what other factors which should be taken into account before a final decision is made