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(6 Marks) 14. Johnson Farm Implements has the opportunity to develop and market a new product. Corporate cost of capital 15% Project Risk premium 5% Investment -year 0 $800,000 Upgrade investment - year 2 $100,000 Net Free Cash Flows from operations before maintenance capital. Year 1 100,000 Year 2 200,000 Year 3 200,000 Year 4 500,000 Year 5 1,000,000 Annual maintenance capital beginning in year 2 equals 4% of the initial investment. A: Complete a detailed investment analysis of this project including NPV, payback and Pl analysis. (5 Marks B: Recommend whether or the company should invest in the new product, and why. (1 Mark)