Could someone help me? I do not know how to do a,b, and c and would love to see a step by step explanation

Thank you

Agrotechnica Ltd (Agrotechnica), a company that specialises in producing fertilisers, has recently been experiencing some quality issues with a number of its products. The company has also seen its market share decline in the past year, as new competitors have entered the market for fertilisers. The management of Agrotechnica are currently developing an 8 year strategic plan. As part of this 8 year plan, Agrotechnica is considering replacing its existing production line equipment with a new automated production system. The existing production line equipment has a remaining useful life of 8 years and if the company were to dispose of it immediately, they could sell it for £3 million. The existing production line equipment currently has a net book value of £4.5 million (based on the latest balance sheet figures). The existing production line equipment will have zero disposal value in 8 years’ time at the end of its useful life. The average investment in working capital in order to maintain and run the existing production line equipment is £1.5million. AF1201 – Exchange Assessment ?3 The new automated production system can currently be purchased for £10 million. The new system will require annual service and maintenance by specialist technicians which will cost £1 million per annum. Agrotechnica estimates that there will be efficiencies from operating the new system in terms of fewer product defects. These cash savings are estimated to be £2 million per annum. The new automated production system is expected to be used in the business for 8 years and has an estimated disposal value of £4 million at the end of the 8 years. Agrotechnica estimates that the average investment in working capital required to maintain and run the new system will be £1 million. Agrotechnica uses a 15% discount rate.

Questions: a. Calculate the net present value of purchasing the new automated production system, rather than holding on to the existing production line.

b) Based on your findings from part (a) above what would you advise Agrotechnica to do? Give reasons for your answer.

c) What other non-financial factors might the directors of Agrotechnica consider prior to making a final decision on whether or not to replace the existing production line?

Thank you so much!