Phuduhudu (Pty) Ltd is setting up a project to manufacture solar panels from its factory in Gaborone West industrial area selling each panel for $100. The material cost for each standard panel is $30. The fixed costs incurred each year for factory upkeep and administration expenses are $200000. The machinery costs $1 million and is depreciated straight line over 10 years to a salvage value of zero. The company is in the marginal tax rate of 35%. The project has 10 -year life and the discount rate is 12%. a) If the sales are 7000 solar panels each year, lay out the annual cash flow for the project. (12 marks) Page 3 of 4 b) Calculate the Net Present Value for the project. (5 marks) c) Based on your calculation above, should Phuduhudu proceed with the project or reject it