This assignment revolves around CSL Limited, a multinational biotechnology company that focuses on developing and delivering innovative biotherapies and influenza vaccines. CSL has proposed the construction of a New Biotech Project aimed at enhancing its production capabilities for plasma$-$derived biotherapies. Your task is to evaluate the financial viability of this project using capital budgeting techniques.

Assignment Case Details and Assumptions: CSL$\text{'}$s New Biotech Project

Background Information: CSL is a company that is listed on the Australian Securities Exchange $($ASX$).$ As of $28$ March $2024,$ CSL had a market capitalization of $$139\mathrm{.}138$ billion, showcasing its significant presence in the global biotech industry.

Project Announcement: On $28$ March $2024,$ CSL announced its intention to build a steof$-$the$-$art biotech facility $($New Biotech Project$)$ to increase its production of plasmaderived therapies $($this is a fictional scenario for this assignment only$).$

Market Demand: Given the growing demand for these therapies, CSL secks to evaluate the New Biotech Project's construction feasibility to ensure they meet future needs.

Feasibility Study: In late $2023,$ CSL conducted a detailed feasibility study for its New Biotech Project. The study costs $$1$ million to assess market demand and financial viability.

Initial Investment: The New Biotech Project has a seven$-$year useful life. In $2024,$ CSL New Biotech Project's initial investment is $$210$ million for building construction, $$490$ million for purchasing essential machines $($production assets$)$ and installation costs.

Depreciation: The Australian Taxation Office $($ATO$)$ has confirmed to CSL that for tax purposes, the New Biotech Project's building has a thirty$-$year life, and the machines have a seven$-$year tax life. CSL expects that machines can be operated for seven years before requiring replacement.

Financing: In $2024,$ CSL plans to take a $5400$ million loan over $7$ years with an interest rate of $6\%$ per annum, and the first annual instalment is in $2025.$ The rest of the investment is financed from internal funds.

Rental Income Loss: CSL owns land that can be used for the New Biotech Project. The land is currently leased to a construction company for $$500,000$ per annum. If the New Biotech Project is not built, CSL will continue the lease agreement.

Revenue Projections: Starting operations in $2025,$ initial revenues are expected at $$300$ million, with a projocted annual growth of $4\%.$