QUESTION 2 [24 MARKS] The ABC company manufactures two products: Product X is manufactured by Division X and Product Y is manufactured by Division Y. Both products incur costs in the ABC company's production and packaging departments. The following data relate to the month of June: "These are the actual hourly wages paid to the department's employees. You may assume that the production and packaging departments incur no further valuable costs. The total capacity available is 1000 hours per month for production and 1500 hours per month for packaging. The demand in June is 500 units of product X and 500 units of product Y. Owing to the capacity restrictions in the production and packaging departments, the company had to perform a linear programming exercise to determine the optimal mix of product X and Product Y. It has shown that 334 units of product X and 333 units of product Y should be manufactured in June and has indicated that the respective units shadow prices should be N$33.33 per hour for the production department and N$26.67 per hour for the packaging of department. [25 MARKS) QUESTION 4 A compary is considereg the launch of a new 50 mobile phone Experience from the sale of previous models has shown that the expected we of the new model is wree years and life gele sales willotal 25 milion unds. Saes volumet ovet the lie cycle of the product wilh follow the pathem shown below - Year 130% +2560000 - Year 2.40% - Year3-30\% The company's research and development division, which has an annual budget of N535 milion has developed a protobye of the 56 phone. A further investrnent of NS609 milion in a new manufacturing facility wirl be required of the start of year 1 to put the new model into production. The new model will be marketed at a premium phice of N53 39 per unit trroughout the life of the model. The 50 model will be produced exclusively in the new manulacturing faclity. The total fxed manufacturing costs wa be N53qammenper year excluding depreciation. as is aso antipated that a further NS150 milion will be spent in each of years.s and 2 and NS100 milion in year 3. on further development and makkting of the new model. The variable cost per unit will be N5125 and this is expected to remain the same throughout the lfe of the model it is estimated that the launch of the new model will result in a reduction in sales of the current 40 model of 2 miltion units in the frrst year aftar which there will no longer be a market for the 45 model. it was never antieipated that there would be a maket for the 4G model after this period. The contribution per unit of the 4G model is NS100. The company's financial director has provided te following taxation intormation: Wear and tear allowances: - Tax depreciation is accounted for on a straigritine method - Taxation rate, 32%, half of the tax is poyuble in the year in which it aries, 3 in balance is paid in the following year. - Any taxable losees resulting from this irvestrent can be set against profis mede the company's other business activities. The compary uses a cost of captas of Bs: annum to evaluate projects of this type. REQUIRED Caiculate the Net Present Value (NPV) of the project including year \& work a) Caiculate the foet present Whole numbers in ALL your calculations)