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Powerless Ltd is a recently formed company aiming to provide alternative energy solutions to a broad market. The company currently imports and sells primarily Chinese

Powerless Ltd is a recently formed company aiming to provide alternative energy solutions to
a broad market. The company currently imports and sells primarily Chinese-built solutions;
however, it is in the intermediate stages of planning to build its own local assembly line. The
most favoured plan amongst management is to purchase components overseas and to then
assemble inverters, solar panels, and battery packs locally, which will require an initial
investment of R40000000. Based on the sales of the current imported equipment and the
expected cost of local assembly, the company expects sales generated by the plant as follows:

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