Wigan Ltd is a long establised company providing high quality transport for customers. It currently owns and runs 350 cars and has a turnover of 10million per annum.The current system for allocating jobs to drivers is very inefficient. Wigan Ltd is considering the implementation of a new computerised tracking system called Quicktrace. This will make the allocation of jobs far more efficient. As the financial manager for Wigan Ltd, you have been asked to perform some calculations to help Wigan Ltd decide whether Quicktrace should be implemented. The project is being appraised over five years. The costs and benefits of the new system are set out below. 1) The computerised tracking system costs 2,100,000 pound to implement . This amount will be payable in three equal instalments: one immediately, the second in one year''s time, and the third in two years'' time. 2) Depreciation on the new system will be provided at 420,000 pound per annum. 3) Staff will need to be trained how to use the new sytem.This will cost 425,000 pound in the first year. 4)If quicktrace is implemented, revenues will rise to an estimated 11 million pound this year,thereafter increasing by 5% per annum(i.e. compounded). Even if Quicktrace is not implemented, revenues will increase by an estimated 200,000 pound per annum, from their current level of 10million per annum. 5)Despite increased revenues, Quicktrace will still make overall savings in terms of vehicle running costs.These cost savings are estimated at 1% of the post Quicktrace revenues each year(i.e. the 11 million revenue, rising by 5% thereafter, as referred to in note 4) 6) 6 new staff operatives will be recruited to manage the Quicktrace system.Their wages will cost the company 120,000 per annum in the first year, 200,000 per annum in the 2. year, thereafter increasing by 5% per annum 7) Wigan Ltd will have to take out a maintenance contract for the Quicktrace system.This will cost 75,000 poun per annum 8)Wigan''s tax liability is 30% 9) Wigan Ltd''s value of ordinary shares= 800,000(cost16%) and Loan capital 400,000(cost 14%) Required: Prepare a report advising Wigan Ltd if the new Quicktrace project should be adopted. Include clearly in your Report justifications supported by relevant calculations. NOTE: You should assume that all cash flows occur at the end of year, unless otherwise stated. Present Value Table periods(n) discount rate (r) 10% 1 0.909 2 0.826 3 0.751 4 0.683 5 0.621