Bright Lighting Ltd is considering a new range of product basedon a specific type of intelligent stage lighting after extensivemarket research costing $60,000, which was paid yesterday. Brightexpects that this range will increase the firm’s revenues by$1,565,000 in the first year of operations. Thereafter, revenueswill only increase by 15% p.a. The additional material will cost$850,000 p.a., additional labour cost is expected to be $350,000p.a. and other miscellaneous costs are estimated to be $52,000 p.a.After the first year, Bright expect these costs will increase by2.5% p.a. each year. [Assume that all revenues are received andthat all costs are paid at the end of each year.] The initialoutlay of $2,125,000 will be depreciated on a straight-line basisto zero salvage value over the 8-year productive life of theproject. It is estimated the various components of equipment can besold for $100,000 at the completion of the project. The firmrequires a 12.5% p.a. required rate of return and the tax rate is30%. Tax is paid in the year in which net earnings are received.Calculate the incremental cash flows for each year (Y0 to Y8inclusive). PLZ consider Y0. Calculate the net presentvalue, that is, the net benefit or net loss in present value termsof the project.