a) (Consider a capital expenditure project that has forecasted revenues equal to RM32,000 per year; cash expenses are estimated to be RM29,000 per year. The cost of the project equipment is RM23,000, and this equipment can be sold at market value of RM9,000 at the end of the project. The equipment's RM23,000 cost will be depreciated on a straight-line basis to RM0 (no salvage value) over a 10-year estimated economic life. Assume that the project requires an initial RM7,000 working capital investment and these cost will recover at the end of the project. The company's marginal tax rate is 25%. The project's required rate of return is 12%.)

i. (Calculate the initial cost (t=0) for this project) (3 markah/marks)

ii. (Calculate the after tax cash flow at the end of the first year to at the end of year nine) (3 markah/marks)

iii. (Calculate the after tax cash flow at the end of year ten). (3 markah/marks)

iv. (Based on the Net Present Value and Internal Rate of Return approaches, can we accept this project?) (3 markah/marks)