Hasni Logistic Sdn Bhd has been offered a seven-year contract from the AppleTechno Son Bhd to transport special equipment to their destination in the southern region. Since this contract would represent new business, the company need to purchase several new container truck at a total cost of RM525,000 if the contract were accepted. The buses would have a useful life of 10 years but need to be overhauled at cost of RM67,500 after 5 year of usage. Annual operating costs include : Salaries RM231,000 Fuel RM148,000 Maintenance RM90,000 Road tax RM40,500 Salvage value of the truck at termination of the contract is RM27,000. Annual cash receipts from the contract is expected to be RM67,500. To raise money to partly finance the purchase of the truck, the company will several old, fully depreciated truck for a total selling price RM24,000. The company requires a 16% after tax return on all investment. The tax rate is 24%. For tax purposes, the company computes depreciation assuming no salving value and using straight- line depreciation. The truck would be depreciated over 5 years. Required : a) Compute the net present value of this investment opportunity (round all RM amounts to nearest whole RM). (15 marks) b) Should the above contract be accepted? Explain. (5 marks) c) State TWO (2) basic assumptions when using the net present value method to evaluate long-term investment decision