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Cherian's Children's Toys Ltd. manufactures toys for children. For some years small bikes without pedals have been gaining popularity with children under 5. Cherian is considering purchasing the equipment to manufacture these bikes. The equipment will last 5 years and cost approximately $120,000. Cherian believes he can sell it for $12,000 at the end of 5 years. His tax rate is 15%, the CCA rate will be 20% and the required rate of return is 8%. Chenan predicts income from the project will be $20,000 in the rst year and increase by $1000 each year thereafter. Required: Calculate the NP'llr and comment on whether Chelian should undertake the project