Question Three XYZ Ltd is investing in a new manufacturing process. The following information relates to the new manufacturing process: Cost of equipment Cost of installation Useful life Residual value Depreciation method $450,000 $50,000 4 years $50,000 Straight line The new manufacturing process generates two cash flows. Cash flow 1: cash flow from local sales Cash flow 1: cash flow from foreign sales Year Cash flow 2 $000 1 Cash flow 1 $000 100 80 120 80 70 AWN 60 50 90 The company's required rate of return is 10% (Ignore taxation and inflation) Required: (a) Calculate the Net present Value (NPV) for the above investment and recommend on a purely financial basis whether XYZ should proceed with the investment. [6 marks] (b) Calculate the Discounted payback period (DPBP) for the above investment and recommend on a purely financial basis whether XYZ should proceed with the investment. [6 marks] (c) Compare and contrast NPV method and DPBP method. [3 marks] (d) State four (04) non-financial factors that must be considered by XVZ, before proceeding with their investment. [5 marks]