QUESTION 8 An Australian company, GHI Ltd, is examining a potential investment in England. The project is expected to cost GBP 80 million and have a salvage value of GBP 30 million at the end of its 4-year life. Revenues generated from the project are based on estimated annual sales of 10 million units at a price of 12 each. Variable costs are expected to be 4 per unit and fixed costs are expected to be GBP 12 million per year. The current exchange rate of AUD 0.55 GBP and the AUD is expected to depreciate at 3% pa over the life of the project. The required return is 10% in AUD. Calculate the NPV of the project and determine whether it should be undertaken