Calculate the initial investment of the replacement project from the information provided below. INFORMATION Bansai Limited wants to replace an old machine that has reached the end of its useful life with a new machine that will cost R800 000. Additional installation costs of R60 000 will have to be incurred on this new machine. The old machine has a book value of RO but can be sold for R30 000. Clean-up and removal costs of R5 000 will have to be paid for the old machine. Working capital for the old machine amounted to R120 000. The new machine will result in an increase in working capital of R150 000 The company is subject to a tax rate of 28%. Use the information provided below to calculate the operating cash flows over the four year period. INFORMATION Galanz Ltd is to invest R400 000 in new equipment, excluding installation costs of R20 000. The equipment will be depreciated on a straight line basis over its five year useful life. The following are the expected incremental increases in net operating profit (loss) after taxes (NOPAT) over the five year life of the equipment: Year 1 2 R 60 000 50 000 45 000 40 000 30 000 3 4 5 5 Calculate the terminal cash flow from the information provided below. INFORMATION Capital Ltd intends to sell equipment that has reached the end of its useful life for R20 000. The equipment is expected to have a book value of RO. Removal costs of R2 000 are expected to be incurred when the equipment is sold. Net working capital of R130 000 was invested when this equipment was purchased and will be recovered on the sale of the equipment. The company is subject to a 28% tax rate