G. Rod Electric Components Corporation is considering replacing a 10-year old machine that is originally cost RM37 500, has a current book value of RM12 500 with five years of expected life left. This old machine is being depreciated using simplified straight-line method over its 15-year of expected life down to terminal value of RMO in five years, generating depreciation of RM2 500 per year. The replacement machine being considered would cost RMIOO 000 and have a 5-year expected life over which it would be depreciated using simplified straight-line method. At the end of its expected life, the machine would have a salvage value of RM35 000. Materials efficiencies resulting from the replacement would result in savings of RM30 000 per year before depreciation and taxes. Currently, the old machine can be sold for RM17 000. Assuming the marginal tax rate is 34% and the required rate of return is 20%:

Calculate the initial cost of the machine?

Calculate the operating cash flow of the machine?

Calculate the net working capital?

Calculate the terminal cash flow.

Calculate the incremental cash flows (net cash flow) of the project.