Evaluate the project using Net Present Value (NPV), stating all assumptions.

Assumptions:

• The question implicitly asks for a capital budgeting evaluation, and NPV is a standard method.
• The tax rate is assumed to be 0% as no tax rate is provided. Therefore, depreciation does not create a tax shield.
• The discount rate (cost of capital) is assumed to be 10% per annum, as it is not provided.
• The GH¢50 per unit is the contribution margin (sales price less variable cost per unit).
• No changes in working capital are considered.
• The GH¢100,000 contribution from retaining the old machine is an irrelevant opportunity cost because the new machine *necessitates