Q6. You are an analyst in the CFO's office of TrueMeds Co Ltd, a pharmaceutical company. Your company is evaluating whether to launch a new medical formulation in the market. The CFO has asked you to evaluate this project's financial viability. You have had meetings with the engineering, marketing; sales, and production teams of your co on all these meetings, you have arrived at the following data: The initial investment in the project is expected to be Rs 20 lakhs and its useful economic life is 5 years. The project is expected to generate sales of Rs 12lakhs in year 1, and sales shall increase at 10% each year till year 5. Operating expenses is expected to be 30% of sales. The company's tax rate is 30% and cost of capital is 14%. Calculate NPV for the new project. Based on the above information, would you recommend to go ahead with the project? of 3/5 1 C JA