Q1. (a) Mazola Holdings currently considering a project that could help to expand company market size. For this project, the company needs to buy a machine with a net cost of $750,000. This company uses a straight-line to zero deprecation method with no salvage value at the end of year 5. Sales are expected to be 500 units per year at the price of $2,500 per unit with the variable cost per unit is $1,500 and fixed costs are $200,000 per year. The required return is 17 percent per annum, and the tax rate is 34 percent. Suppose that the sales, variable cost and fixed cost projections are accurate to within 5 percent. (i) What are the upper and lower bounds for these projections? (6 marks) What is the net present value (NPV) for all situations? (6 marks)