Highlanes Electronics is exploring the option of developing a new product to supplement its current product portfolio. The product will sell for 683.53 each and they expect to sell 600 units in 2024,750 in 2025, 850 in 2026, 750 in 2027 and 720 in 2028, when the product will be withdrawn. The product will cost 550,000 to develop, a cost that will be incurred in 2023. It will cost the company 115,000 to remove the product at the end of 2028 . The cost of sales associated of this new product is expected to be 23.44% and the associated overheads 28.32%, both in relation to sales revenue. The current bank interest rate is 4%. The Profit and Loss Account for the current year is: The Balance Sheet as at the end of the current year is: Questions: b) From a financial point of view should they develop the new product and why or why not? [10 marks] c) What other considerations might the company want to take into account in reaching their decision, include reasons for and against? [10 marks] Enter your answers in the boxes provided (marks for each answer are shown in [red]) a) Hurdle Rate? c) What other factors should they take into account before making a final decision? What hurdle rate should the company use in the calculation of What other considerations might the company want to take into account in reaching their whether they should invest in this new product or not? b) From a financial point of view should they develop the new product and why or why not? What is the Nat Cach flow in From a financial point of view should they invest in this project? (Yes or No) \lceil