Pembroke Investments Ltd (PI) produces unusual gifts targeted at wealthy consumers. The company is analyzing the possibility of introducing a new device designed to attach to the collar of a cat or dog This device emits sonic waves that neutralize airplane engine noise, so that pets travelling with their owners will enjoy a more peaceful ride (i)Pl estimates that developing this product will require up-front capital expenditures of 10 million. These costs will be depreciated on a straight-line basis for five years (ii)PI believes that it can sell the product initially for 250. The selling price will increase to 260 in years 2 and 3 before falling to 245 and 240 in years 4 and 5, respectively (iii) After five years the company will withdraw the product from the market and replace it with something else (iv)Variable production costs are 135 per unit. (V)Pl forecasts sales volume of 20,000 units in the first year, with subsequent year on year increases of 25 percent (year 2), 20 percent (year 3), 20 percent (year 4), and 15 percent (year 5) (vi)Offering this product will force PI to make additional investment in working capital Projected end-of-year working capital requirements are as follows Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Working Capital700,000 700,000 900,000 1080,000 1080,000 Variable Selling and Administration Costs are 16% of Sales Values. The discount rate is 10% Requirement (a)Calculate the net present value of the project. (20 marks)