Question 2 [8 Marks] A company wishes to bed on a contract that is expected to yield the following after-tax net cash flows at the end of each year Year Net Cash Flow R 1 2 3 4 5,000 8,000 9,000 8,000 8,000 5,000 3,000 -1,500 5 6 7 8 To secure the contract, the Company must spend R30,000 to retool its plant This retooling will have no salvage value at the end of the 8 years Comparable investment alternatives are available to the company that earns 12 percent annual interest Tho dopreciation tax benefit from the retooling is reflected in the net cash flows in the table above Required: 2.1 Calculate the project's not present value 22 Should the project be adopted? (2) 23 What is the meaning of the calculated net present value figure? (2) (TURN OVER)