A chemical company that manufactures specialty chemicals is considering building a multipurpose production facility. This company has estimated that the initial cost investment is RM27,000,000.00. The plant is expected to have a useful life 15 years.

a. Calculate the Annual Cost of Depreciations and the Book Values for each methodology;

Straight line

Sum of year digits, SOYD

Double declining balance, DDB

Modified Accelerated Cost Recovery System, MACRS

b.Which method gives the highest Book Value at Year 5 and Why?

c. Perform after-tax analysis if MACRS depreciation with a 5-year recovery. Income and expenses are estimated at RM3,000,000 and RM600,000, respectively. What is expected IRR, given the income tax rate is 25%.

(with steps please, not just tables and excel)