XYZ (Pvt) Limited is considering a potential project, for implementation exactly a year from today. The project's economic life is expected to be three (3) years. It is forecast that the purchase price for the machinery needed for the project will be $1 200 000 at the point of purchase. The purchase price will be paid at the beginning of the project. It is expected that the machinery will be disposed of for $200 000 at the end of its useful life. In the first year, 4 000 units will be produced and sold, with this figure doubling in the second year while the third year quantity will 60% of the second year quantity. The initial selling price per unit and variable cost per unit, at today's terms, are set at $125 and $37.50 respectively. The selling price-specific inflation level is expected to be 4.5% p.a. during the next year and a further 3.5% p.a. thereafter for the foreseeable future. The variable cost- specific inflation level is expected to be 5% p.a. for the foreseeable future. Taxation is paid at 27.5% a year in arrears. Working capital equivalent to 15% of annual sales revenue will be needed at the beginning of each year. Tax allowable depreciation is available at 25% p.a. on a reducing balance basis. The company's real rate of return is 6.315% while the general inflation rate has been estimated to be 4.4067% Required a) Determine the NPV of the project. N.B. work in $000 and round all numbers to the nearest $000