Company A produces coconut oil for domestic use. The company' chairman plans to expand their market by exporting oil to Europe. For this plan, a new oil processing machine had to be purchased to replace the old processing machine. The following is the information for both machines. Old Machine: Cost RM100'000 Current Selling Price RM30'000 Machine Life Span 10 years Residual Value At The End Of The 101RMO Year Depreciation Spending RM10'000 each year 5 years Remaining Machine Life Depreciation Method Easy Straight Line Depreciation Project Lifespan 10 years New Machine Cost RM175'000 Current Selling Price At The End Of TheRM60'000 Project RMO Residual Value In The 7th Years Machine Life Span 17 years 5 years Project Lifespan Depreciation Method Easy Straight Line Depreciation The use of this new processing machine is expected to generate the company revenue of RM45'000 per year. Net working capital is expected to increase by RM12'500. Machine maintenance costs will decrease by RM6700 per year and operating costs increase by RM18300 per year. The required rate of return for this machine replacement project is 12% and the corporate tax rate payable is 28%. (a) Calculate the cash flow at the end of this project. (b) Calculate the net present value (NPV) of this project. (c) Should the old machine be replaced with a new machine? Why