A2Z Bhd is considering the purchase of a new machine. It costs RM20,000 and requires installation costs of RM2,000. The new machine is estimated to have an expected useful life of 5 years with a salvage value of RM2,000 and will be depreciated using the straight-line method. The old printing machine has zero terminal book value and 5 years remaining useful life. It is depreciated using the straight-line method. It was purchased 5 years ago for RM10,000 and can be sold today for RM14,000. With the use of the new machine, annual sales are expected to increase by RM10,000 and expenses (excluding depreciation) will represent 30% of sales. This new machine will require an increase of RM1,000 in inventories. A2Z Bhd needs a larger space to store these inventories, and hence a small rom that is currently being rented out for RM1,200 per annum will be converted into a store room. Two staff were sent for training last month and the firm has paid RM5,000 training fee. The firm is paying 25% tax rate. a (0) 1. What is the Cash outflow? 2. How much is the Accumulated Depreciation for the old machine? 3. What is the Book Value of the old machine? 4. How much is the Loss on disposal of old machine? 5. How much is the tax savings on loss from sale? 6. What is the Cash inflow? 7. Compute the Net initial outlay. (ii) 1. How much is the increase in cashflows? 2. What is the depreciation expenses of the new and old machine? 3. How much is the Increase in depreciation? 4. What is the total decrease in cashflows? 5. What is the net profit before tax? 6. What is the net profit after tax? 7. Compute the Annual after-tax differential cash flows. (iii) 1. Which items need to recover for the terminal cashflows? 2. Compute the terminal cashflows