(c) Your friend offer you an investment opportunity, purchase a new printing machine expected to be produced next year. It is a new technology for colouring printing with cheaper cost. You evaluated that the machine will have a three-year life, at required investment of RM75,000. The salvage value at the end of three-year is RM15,000. The installation cost for the machine is expected to be RM12,500. The operating expenses are expected to be RM8,000 for each of three years. Because of the time lag between revenue received and collecting accounts receivable, expected revenue and expected cash flow from the project would be as follow: Month 1st year 2nd year 3rd year 4th year Expected Revenue RM30,000 RM45.000 RM55.000 Expected Cash Inflow RM25,000 RM35.000 RM40.000 RM30.000 The salvage value of the machine is expected be received during the fourth year. The company's desired rate of return is 12%. Required: i. Calculate the initial outlay for the investment [1 mark] ii. Calculate the Present Value of inflow from the investment using a discount rate of 12%. [6 marks iii. Calculate the Net Present Value of the project AND evaluate whether the investment should be made? Justify your answer. [2 marks] Answer: Beginning Year 1 Year 2 Year 3 Year 4 Initial Outlay: [1 mark] Present value of inflow: [6 marks Net Present Value [2 marks)