PROBLEM #1: [20 marks] - Solve on paper, take a picture and upload BykeDekho Americas is about to launch a new range of electric scooters, priced at $150.00 per unit. The unit cost of the scooters is $130.00. The firm expects to sell the scooters over the next 5 years. The venture will require an initial investment in plant and equipment of $250,000.00. Assume that the investment will be in an asset class with a CCA rate of 30.00%. At the end of 5 years, the project ends; plant and equipment will have a zero salvage value and BykeDekho Americas will continue to have other assets in this asset class. Sales projections for the scooters are as follows: Year Unit Sales 1 5,000 5,500 5,250 5,700 6,000 The net working capital requirement (including the initial working capital needed in year 0) is expected to be 20.00% of the following year's sales. The firm's tax rate is 35.00% and the discount rate is 9.00%. Calculate the net present value of the project. Should the firm undertake the project? Why or why not? (Show all your calculations and not just final answers. The final answers do not carry a lot of marks. You can use tables as you see fit). maim tin 2 3