project X is being con cost is estimated to be tsh $400,000$ of which tsh $100,000$ is for building, tsh $150,000$ is for machinery and tzs $150,000$ is for vihicles. the project would operate for $12$ years and vihicles would have to be replaced in year $8.$

the project would produce tsh $1000$units of output in year $1,2000$ units in each of year $2$ to $11$ and $1500$ units in year $12.$ all units produced in each year will be sold for tsh $230$ per unit.

the operating cost are tsh $100$ for materials and tsh $40$ for labour per unit respectively and annual wage bill is estimated at tsh $30,000$ per annum.

required

draw an annual statement of project costs and benefits in constant market price.

compute NPV for the proposed project above using discount rate of $12\%$ comment on your answer.