Question 3 (2.5 marks): Leyburn plc is considering launching a new product involving capital investment of 198,000. The machine has a three-year life and no residual value. Sales volumes of 6,600 units are forecast for each of the three years. The product has a selling price of 66 and a variable cost of 40 per unit. Additional fixed overheads of 55,000 will be incurred. The cost of capital is 13.5 per cent p.a. Present a report to the directors of Leyburn plc giving: (a) the net present values; (b) the percentage amount each variable can deteriorate before the project becomes unacceptable. COPY Jain avaluating raturna donand