Pegasus Telecommunications Ltd (PTL) is considering rolling out a new cable Internet service, PTL is a taxable publicly listed corporation operating in Australia. PTLs management is in the process of analyzing the project using the NPV method, and as a junior analyst you have been asked to gather the relevant information. For each of the following items explain briefly (no more than 1 sentence) why that item is or is not relevant to the NPV computation

A. PTL headquarters allocate central company costs to departments at a rate of $5,000 per employee per year

B. PTLs bank will charge an interest of 12% p.a. compounded monthly on the loan required to purchase the necessary hardware