Company XYZ is seeking for investment in a new project with a capital of RM130 Million. Three (3) projects have emerged as candidates for construction after extensive research and preliminary design work. The minimum acceptable internal discount rate has been set at 10% and the tax rate is 45%. The information regarding capital investment, sale revenues, and cost of manufacturing for the 3 projects are given in Table 1 below: Table 1: Capital investments, sale revenues, and cost of manufacturing for the three projects (Values in RM Million) Investment/Cost/Revenue Project 1 Project 2 Project 3 Total fixed capital investment (FCIL) Year 1 60 70 60 Year 2 30 30 45 Cost of land (L) 8 10 7 Working capital (W) 15 20 Depreciation for 7-year (dk) 12 13 14 Salvage value of plant (S) 6 9 7 Yearly revenue sales (R) 50 65 60 The yearly cost of manufacturing excluding 25 30 25 depreciation allowance (COMO) 10 A ten-year operating life has been considered for each project. a) Recommend the best option for the company XYZ investment by demonstrating a suitable analysis. (16 Marks) b) If the net present value (NPV) for the selected project is expected to be RM 30 Million, compute the yearly saving of the project. (4 Marks)