Assume Taflean Ltd is considering purchasing a new printing press. The cost of the press is R$450000($excluding an installation cost of R$50000).$ This outlay will be partially offset by the sale of an existing press. This old press has a zero book value, cost R$250000(10$ years ago$)$ and can be sold currently for R$150000$ before tax. It is expected that the new press will result in sales in each of the next five years increasing by R$300000,$ but the increased production costs $($excluding depreciation$)$ will represent $40\%$ of sales. An increased investment in net working capital of R$55000$ will be needed to support operations if the new press is acquired. Depreciation is calculated on a straight line basis over the economic life of the asset to zero book value. However, the new press has an expected market value of R$100000$ at the end of its five year economic life. Taflean$$s cost of capital is $12\%$ and the firm is subject to a $28\%$ tax rate on ordinary income. Required: $2\mathrm{.}1$ Determine the initial investment required for the new press. $(5$ Marks$)2\mathrm{.}2$ Determine new operating cash flow attributable to the new press. $(6$ Marks$)2\mathrm{.}3$ Determine the payback period. $(3$ Marks$)2\mathrm{.}4$ Determine the NPV to the proposed new press. $(21$ Marks$)2\mathrm{.}5$ Make a recommendation to accept or reject the press and justify your answer. $(2$ Marks$)$