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Q$1.$ Hyndland Whisky Distilleries PLC is considering whether or not to develop a new whisky$-$based alcoholic drink, which it plans to distribute to bars and nightclubs across the city of Glasgow. The proposed project requires an initial investment of $300,000$ in new machinery. The project will generate sales of $50$ per unit, and the company expects to sell $5,000$ units in the first year, with sales subsequently increasing by $10\%$ each year. The direct cost per unit is $30,$ and the direct fixed costs are $20,000$ per year. The machinery will be depreciated on a straight$-$line basis over five years, and the salvage value is estimated to be zero. The company's tax rate is $30\%,$ and the discount rate is $10\%.$ They have asked you to consult them on whether they should undertake this project or not. Undertake a capital budgeting exercise to:

calculate the annual net income and net cash flows for this project

determine npv for this project

determine irr for this project

determine profitability index for this project