CR has plans to expand its business both product and market wise. In view of this plan, Mr Ramsey was recently hired as the business development manager at CR. Recently, CR has been approached by two television companies with requests to make a series of documentaries for television broadcast for the next five years. According to the finance manager, Ms Jothy, the initial financial outlay for the documentary project is estimated to cost the company RM500,000. The current equipment and tools are fully utilised for existing production works. Thus, the company must invest in new digital equipment and tools that accurately capture the real-life scenes enacted for the project. Ms. Johty is confident that if the company can raise the initial outlay, the company will be able to generate high stable income for the next five years. The CEO is considering turning down the requests because of the lack of resources to make the series on the timescale required. However, Mr. Ramsey and Ms. Jothy feel that making these documentaries could be a useful way to expand the business product portfolio and to increase CR's future revenue. Mr Ramsey also pointed out that there is a growing market for documentary production in Asian countries. Both have convinced the CEO that if the current request for documentary production pulls through, there is a high possibility that CR will be able to expand its business activities into the Asian market. To raise the initial outlay, Ms. Jothy has suggested that the company take out a bank loan. Bank is willing to give the full loan at a reasonable interest rate. The cost of capital is estimated at 10%. Appendix 1(Budgeted Revenue and Cost for Year 1-5) Year 0 RM 1 2 3 RM'000 RM'000 | RM'000 RM'000 4 5 RM'000 Revenue 300 350 420 550 670 Production Costs 150 180 200 220 230 Non-production 67.5 72 80 95 115 costs Notes 1. Fixed production overhead cost includes depreciation of the existing equipment. 2. New digital equipment will be purchased to meet the project needs for the next five years. The equipment will have a life of five years, and at the end of that time it will be sold for RM10,000. It will qualify for tax depreciation at the rate of 20% per annum on a reducing balance basis. 3. CR is liable to pay tax on its profits at the rate of 30%. Half of this is payable in the year in which the profit is earned, and the remainder is payable in the following year. 1. The CEO has asked Ms Jothy to prepare a five-year cash flow projection for the documentary project. Appendix 1 shows the details of the projected cash flow. An extract of the company's financial statements for 2021 is also provided in Appendix 2. (a) Using the information in Appendix 1, calculate the net cash flow for YO until Y6. (Include tax payable and tax credit in the calculations). (Ctrl)