1. Poncho Industries is considering introducing a new project on the market next year (2022). Itwant to invest K400 000 into the project. The marketing department has estimated that the selling price of the new product will be K60 per unit, the fixed cost will amount to about K17 000 and the variable cost will be K35 per unit. It has also projected to produce the following units for the first six months of the year 2022. The cost of capital has been estimated to be at 12%.
   1. Net present value

Year	Demand (units)
1	7000
2	6000
3	6000
4	6000
5	6000
6	5000

Required:

Calculate the following values for the investment proposal:

Discounted payback period