The Profitability Index"HW" Sandy Grey Ltd is in the process of deciding whether or not to revise the line of mobile phones that it manufactures and sells. Its sole market is large corporations, and it has not as yet focused on the retail sector. The company has estimated that the revision will cost 220,000. Cash flows from increased sales will be 80,000 in the first year. These cash flows will increase by 5 per cent per year. The company estimates that the new line will be obsolete five years from now. Assume the initial cost is paid now, and all revenues are received at the end of each year. If the company requires a 10 per cent return for such an investment, should it undertake the revision? Use the NPV and the Pl to