Net Present Value $($NPV$)$ analysis is a financial evaluation method used in project managemetet to assess the profitability and viability of investment projects. NPV analysis takes into account the time value of money by discounting future cash flows back to their present value, allowing project managers and stakelbolders to make informed decisions regarding the financial feasibility of the project $.$

A project requires an initial investment of RM $100,000$ and is expected to generate cash flow of RM $30,000$ per year for next five years.The discount rate is $10\%.$Calculate the Net Present Value $($NPY$)$ of the project.

$(8$ marks$)$

$($b$)$ Describe factors and variables that are taken into consideration when calculating the Net Present Value of a project.

$(12$ marks$)$