1. A company is looking at a project with a life of 5 years. The cost of the asset required to run the project is RM 5 million. The after-tax required rate of return (discount rate) is 10 percent, tax is 30 percent and depreciation is 20 percent straight line. The expected salvage value of the assets at year 5 is RM200,000. + Following are the expected cash flows (in '000) of the project. + (000's) Sales Expenses Year 04 Year 14 Year 24 Year 34 Year 44 Year 54 3,000 3,000 3,000 3,000 600k 600 600 600 6002 600 (a) Prepare the projected cashflow for the asset as per below table: Year 04 Year 1 Year 24 Year 34 Year 4 Year 54 1 tl tla CC 21 . (000's) Purchase Sales (1-t) Expenses (1-1) Depreciation Tax Shelter Scrap value Tax on book gain / (Tax shelter on book loss) Net Cash Flow alt 22 at le (b) Calculate Net Present Value (NPV) from your projected cashflow in (a) above. (c) Based on your calculation in (b) above, should this project be undertaken