The company's board has contacted you to provide your expert advisory input regarding its expansion strategy. This strategy involves the establishment of a new business entity. Enclosed are the statistics for the initial endeavour, which is scheduled for launch in the area of Wales in the upcoming year.

As per the company's guidelines, all choices must be grounded in the outcomes derived from computing the Net Present Value $($NPV$)$ of cash flows spanning a $3-$year period, utilizing a $12\%$ cost of capital. Additionally, the Payback Period $($PBP$)$ must not exceed $3$ years, while ensuring that the project's Internal Rate of Return $($IRR$)$ offers a $5\%$ buffer to account for potential rises in inflation or interest rates.

The capital outlay encompasses $15,000$ designated for the land, $19,480$ is cost allocated for the building, and $12,196$ earmarked for fixtures and equipment.

In the first year, the anticipated cash inflows are as follows: a cumulative sales revenue of $56,320$; $12,004$ worth of X products' cost of goods sold; $7,660$ from Y is the cost of sales; staff expenditures amounting to $3,333$; lighting and heating costs of $3,214$; and additional overhead expenses of $10,000.$ Subsequent years will feature identical cash inflows, but they are projected to escalate by $2\%$ due to annual inflation.

Requirements for Question $2$ part $($b$)$

Using the information above and in accord with the above stated company policy you are required to calculate:

$2\mathrm{.}7.$ Net Present Value $($NPV$)(4$ marks$)$

$2\mathrm{.}8.$ Payback period $($PBP$)$ and Discounted Payback Period $($DPBP$)(4$ marks$)$

$2\mathrm{.}9.$ Internal Rate of Return $(1$ mark$)$

$2\mathrm{.}10.$ Based on your calculations do you recommend the investment is made and the opening of the new manufacturing unit? $(2$ marks$)$

$2\mathrm{.}11.$ Critically discuss the limitations of the above project appraisal techniques used and any other recommendations to the board. Using academic references. $(2$ marks$)$

$2\mathrm{.}12.$ Thoroughly analyse the constraints associated with the project appraisal methods mentioned earlier and provide a comprehensive evaluation of other suggestions concerning matters to the board should consider prior to reaching a definitive investment verdict. Using academic references. $(2$ marks$)$ explain it properly and answer it properly also make spreadsheet with formula so i can copy