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) Year 0 Sales Expenses (000's) Purchase Sales (1-t) Expenses (1-t) Depreciation Tax Shelter Scrap value Tax on book gain / (Tax shelter on book loss) Net Cash Flow Year 1 Year 2 Year 3 3,000 3,000 600 600 600 (a) Prepare the projected cashflow for the asset as per below table: Year 0 Year 4 Year 5 600 600 3,000 3,000 600 Year 1 Year 2 Year 3 Year 4 Year 5 (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?