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Handsome Ltd is considering a project with the following cash flows: Year Cost of Plant RM Running costs RM Savings RM 2020 (1,280,000) 2021 2022

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Handsome Ltd is considering a project with the following cash flows: Year Cost of Plant RM Running costs RM Savings RM 2020 (1,280,000) 2021 2022 480,000 550,000 670,000 890,000 840,000 980,000 1,120,000 1,400,000 2023 2024 Handsome Ltd's cost of capital is 10%. Required: a. Appraise the viability of the proposed project using the Net Present Value method of investment appraisal. b. State with reasons if the project is worthwhile. (15 marks)

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