a. b. C. Calculate the follow The initial outlay The annual differential cash flows The terminal cash flows a. b. C. Question 2 Little Star Company is considering replacing its existing machine with a new one. The machine was bought five years ago at a cost of RM700,000. It has another five years of remaining useful life, with zero salvage value. If it is sold now, the company can get RM200,000. Required: Calculate the following: The new machine would cost RM1 million 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 is used to depreciate 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%. The initial outlay The annual differential cash flows THE The terminal cash flows GO