Y3 Ltd is expanding its production of binoculars. The plant is expected to cost $750,000 immediately, have a life of 5 years, and a nil residual value. It will be ready for operation on 31 December 2019. The following statement of comprehensive income figures for the new binoculars are forecast:

2020 2021 2022 2023 2024

$m $m $m $m $m

Sales 1.5 1.3 1.4 1.2 1.1

Costs (including depreciation) 1.0 1.0 1.0 1.0 1.0

Profit before tax 0.5 0.3 0.4 0.2 0.1 Depreciation has been calculated on a straight-line basis. You should assume that all cash flows occur at the end of the year in which they arise. The company's cost of capital is 10%. Ignore taxation.

a. What is the annual depreciation charge for the project? (1 mark)

b. What is the annual cash outflow for the project? (1 mark) c. What is the NPV for this project? (3 marks)