Calculate the following a. The initial outlay b. The annual differential cash flows c. The terminal cash flows Question 2 Little Star Company is considering replacing its existing machine with a new one." Dought five years ago at a cost of RM700,000. It has another five years of remaining usetunne, with Zero salvage value. If it is sold now, the company can get RM200,000. The new machine would cost RM1 million and is expected to have a useful life of billion and is expected to have a useful life of five years. A salvage value of RM100,000 is expected at the end of the five years. The straight-line method the company's non-current assets. Due to higher efficiency, the new machine is expected to produce higher net revenue to the firm amounting to RM250,000 per year. The corporate tax rate is 25%. Required: Calculate the following: a. The initial outlay b. The annual differential cash flows C. The terminal cash flows