Zayith Ghana Ltd is into the production of Zalu. However, at a recent Board meeting, there was a proposal to produce Zele, a new seven$-$octave voice emulation implant. As a result, Zayith investigated the marketing potential of Zele. Zayith sent a questionnaire to consumers in three markets: Accra, Kumasi, and Cape Coast. The results of the three questionnaires were much better than expected and supported the conclusion that Zele could achieve a $10$ to $15$ percent market share. Of course, some people at Zayith complained about the cost of the test marketing, which was GH$50,000.$ Zayith Ghana Ltd projects unit sales for Zele as follows: Year Unit Sales $18300292003104004980058400$ However, the introduction of Zele is expected to lead to $1,000$ units per annum drop in sales Zalu. The selling price per unit for Zalu is GH$100,$ while the variable cost is GH$70.$ This has no tax implications for Zele. Production of Zele will require GH$150,000$ in net working capital to start and an additional net working capital investment each year equal to $15$ percent of the projected sales for that year. In the final year of the project, net working capital will decline to zero as the project is wound down. In other words, the investment in working capital is to be completely recovered by the end of the project$$s life. Total fixed costs are GH$240,000$ per year, variable production costs are GH$190$ per unit, and the units are priced at GH$345$ each. It will cost Zayith GH$2,000,000$ to procure the equipment needed to produce Zele. This is high$-$tech equipment which is not available in the country and will therefore have to be imported from USA. It will cost the company GH$200,000$ in customs duties and freight charges. Again, the installation of the equipment will cost Zayith GH$100,000.$ Because the implants are intended for professional singers, this equipment is depreciated using a straight$-$line basis. In five years, this equipment can be sold for about $20$ percent of its acquisition cost. The cost of acquisition, custom duties and freight charges, and installation, including initial working capital investment, is to be financed partly by a loan from Swez Bank to the tune of GH$1,000,000$ at an interest rate of $15\%,$ and the remaining financed from the firm$$s internal resource. Mr$.$ Qwesi, the Finance Director, has estimated the project$$s beta to be $2\mathrm{.}5$ and the average return for stocks traded on the Ghana Stock Exchange to be $10\%.$ The rate on the Government of Ghana traded Treasury bills is $5\%.$ Required: A$.$ Evaluate the project using the NPV and recommend whether Zayith should proceed with the production Zele. B$.$ Discuss three $(3)$ business factors $($other than the formal financial investment appraisal already conducted$)$ that Zayith should consider before deciding whether to proceed. C$.$ How do you expect the project financing to be treated in the cash flow estimation?