FGV Berhad (FGV) is considering introducing a new product in the market. To evaluate the project proposal, its Chief Financial Officer has collected the following information: -The new product is expected to be on the market for four years (t = 1,2,3, 4) where after four years, the product will no longer be marketed. - To produce the product, FGV will need to purchase a new equipment priced at RM610,000 in the initial year (t = 0). - The new equipment will be depreciated using the MACRS method as per the schedule below: MACRS Depreciation Rate (%) year 1 2 3 33 45 15 7 4 -This equipment will be sold at a salvage value of RM190,500 at the end fourth year. . The company is also expected to spend RM80,000 on promotional activities on the first year (t = 1) this product was marketed. In the early stages (t = 0), companies also need an increase in net working capital (net working capital) operating of RM30,500. Assume that working capital This additional operating net will be fully recovered on end of fourth year. . The new product is expected to generate cash flow before tax such as following: First year RM260,000 Second year RM280,000 Third year RM340,000 Fourth year RM120,000 FGV has a tax rate of 24% and the capital cost for the new product project is 10%. (a) Calculate Net Present Value and regular repayment period payback period) of the project. (b) Should FGV continue the project based on its net present value? Why