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QUESTION 3 [25] HardSoft Ltd is considering developing new software that will indicate likely scenarios arising from climate change. The software includes an educational game whereby players try to save the world by undertaking actions that reduce emissions. The software also offers scientific explanations and presents scenarios about the impact that global warming will have on different regions of the world. The cost of software development, which will be incurred immediately, is expected to amount to R4 million. Year 1 2 3 Sales (No. of units) 100,000 100,000 80,000 60,000 The company expects to sell each unit for R30 to the stores and the variable cost of production, packaging and distribution is R6 per unit. The incremental fixed costs over the next four years is expected to be R40 000 per year. The cost of software development of R4m is deductible for tax purposes over two years i.e. 50% of the cost in each year. The corporate tax rate is 28%. The firm's cost of capital is 14%. What is the project's NPV? What is the project's payback