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Hi, can you help me with these questions. I'm facing troubles and I want to be prepared for my final exams. These questions specifically are

Hi, can you help me with these questions. I'm facing troubles and I want to be prepared for my final exams. These questions specifically are from the advanced financial management subject. And I hope you can help me ASAP as all the classes are held online, I have no one to ask. Thank u in advance for u're help tutors

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a) Maju Construction (MCo) Sdn. Bhd. is bidding on a contract to build four tiny camping house (TCH) a year for the next three years for Sintokian campsite. Each TCH will be sold at the price of P. The project requires the purchase of RM132,000 of equipment which will be depreciated using simplied straight-line depreciation to a zero book value over the three years. The equipment can be sold at the end of the project for RM80,000. MCo will also need RM32,000 in net working capital over the life of the project. The xed costs will be RM36,000 a year and the variable costs will be RM1?6,000 per TCH. MCo required rate of return is 14% for this project and the tax rate is 24%. Based on the information given: Calculate the initial outlay of the project. i) Calculate the initial outlay of the project. (1 mark) ii) Calculate the annual cash ows of the project. (I mark) iii) Calculate the terminal cash ows of the project (2 marks) iv) What is the minimum amount that MCo should bid per TCH if the company required NPV of RM20,000 on this project? (2.5 marks) b) PKP Sdn. Bhd. must choose between two machines, X and Y. The purchasing costs today and maintenance expenses at the end of every year for these two machines are given as follows: j Year Machine X Machine 0 -RM2,000,000 -RM2,500,000 1 -RM200,000 -RM210,000 2 -RM200,000 -RM210,000 3 -RM200,000 -RM210,000 4 - -RM210,000 5 - -RM210,000 All cash ows occur at year-end and the discount rate is 12%. Assume that revenues are the same regardless of the machine, and assume that whichever machine the company chooses, it will continue to buy that model forever. Which machine should the company choose? Tax rate is 24% and simplied straight line is used as the method of depreciation. (2.5 marks) c) Explain why net operating working capital is included in a capital budgeting analysis and how it is recovered at the end of a project's life. (I mark)

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