Answer all questions by encapsulating the following: Initial outlay After-tax differential cashflow (ATDCF) Terminal cashflow (TCF) All SEVEN (7) budgeting techniques. A brief verdict on the decision (accept or reject) Assume that all depreciation is using the straight line method. QUESTION 1 In lieu of the environmental awareness of minimizing industrial waste, Daya Bersih is considering replacing its existing incinerator with the one that comes in better environmental protection. Current machine was just bought five years ago at the price of RM700,000 and it is expected to optimally operate for another 10 years and 10% of the cost of the machine is allocated for salvage value. The new machine costs RM1.05 million and it can last as maximum as 12 years with the scrap value of RM175,000 at the end of its lifespan. Additionally, the logistic fees for the machine are RM15,800 and the installation cost is RM120,000 and such a cost has been included in the machine's price. The new machine is promulgated to become so efficient that the net working capital needed to allow for the project can be reduced up to RM220,000. If the decision of the new machine is agreed upon, the old machine will be disposed at the price of RM375,000. The sales generated by the purchase by the new machine will increase by 32% from last year's sales worth of RM3.2 million from the use of the old machine. However, because part of the new incinerator is integrated with rare metallurgic works, it needs a stricter protection regulation which will have four workers to be employed with RM2,900 of monthly salary. The new incinerator will also need to be powered with a constant electricity that requires 40% more power in terms of the cost from the use of old machine that costs up to RM782,900 per annum. Other than that, the neighbouring sanitary firms would like to send their waste to be incinerated because the firms are still yet to procure the machine. This will bring additional RM38,500 of revenue per month for Daya Bersih Additional information: Daya Bersih is subject of 30% of corporate income tax The cost of capital for the firm is 19.5% Its accounting rate of return is acceptable beyond 35%. Answer all questions by encapsulating the following: Initial outlay After-tax differential cashflow (ATDCF) Terminal cashflow (TCF) All SEVEN (7) budgeting techniques. A brief verdict on the decision (accept or reject) Assume that all depreciation is using the straight line method. QUESTION 1 In lieu of the environmental awareness of minimizing industrial waste, Daya Bersih is considering replacing its existing incinerator with the one that comes in better environmental protection. Current machine was just bought five years ago at the price of RM700,000 and it is expected to optimally operate for another 10 years and 10% of the cost of the machine is allocated for salvage value. The new machine costs RM1.05 million and it can last as maximum as 12 years with the scrap value of RM175,000 at the end of its lifespan. Additionally, the logistic fees for the machine are RM15,800 and the installation cost is RM120,000 and such a cost has been included in the machine's price. The new machine is promulgated to become so efficient that the net working capital needed to allow for the project can be reduced up to RM220,000. If the decision of the new machine is agreed upon, the old machine will be disposed at the price of RM375,000. The sales generated by the purchase by the new machine will increase by 32% from last year's sales worth of RM3.2 million from the use of the old machine. However, because part of the new incinerator is integrated with rare metallurgic works, it needs a stricter protection regulation which will have four workers to be employed with RM2,900 of monthly salary. The new incinerator will also need to be powered with a constant electricity that requires 40% more power in terms of the cost from the use of old machine that costs up to RM782,900 per annum. Other than that, the neighbouring sanitary firms would like to send their waste to be incinerated because the firms are still yet to procure the machine. This will bring additional RM38,500 of revenue per month for Daya Bersih Additional information: Daya Bersih is subject of 30% of corporate income tax The cost of capital for the firm is 19.5% Its accounting rate of return is acceptable beyond 35%