Additional information: Computron Industries is considering the replacement of outdated equipment, which will allow the company to manufacture a new line of electronic calculators. Leigh confirmed that the company is considering two mutually exclusive projects for the replacement. Information regarding expected cash flows from the two projects is as follow: PROJECT A The cost of the new equipment is R8,5 million and the company qualifies for a depreciation deduction of 40% of cost in the first year and 20% in each of the subsequent three years. The equipment is also expected to reduce the cost of producing an existing product line by R180 000 per annum before tax for another four years, when the life of this product line is expected to end. The expected residual value of the equipment is R2,1 million in four years' time. The new line of products will result in a selling price of R85 per unit and variable cost of R38 per unit. The product line is expected to result in a constant demand of 70 000 units per annum for four years. The current tax value of the present equipment is R300 000 and its current market value is R410 000. The equipment is expected to have a residual value of zero in four years' time. The investment in net working capital will amount to R475 000.\fREQUIRED 1.2 Considering all the information supplied thus far and the company's overall risk, which project should Computron Industries choose? Give reasons for 1your choice. {25 marks}