(a)

Inflated sales income 1
Inflated variable cost 1
Inflated maintenance cost 0·5
Tax liabilities 1
Timing of tax liabilities 1
Tax-allowable depreciation 1
Tax benefits of tax-allowable depreciation 1
Incremental working capital 1
Resale value 0·5
Present value calculations 1
Evaluation of financial acceptability 1
–––
10