i) Net incremental cash flows for the project ii) Compute the NPV and IRR of the project for project acceptance at 10% hurdle 3. Wee Ltd. plan on purchasing a new assembly machine for Rs 25,000. It will cost Rs 2,000 to have the new machine installed and we expect a Rs 1,000 net increase in working capital. By making the investment, we will reduce our annual operating costs by Rs 7,000 and we expect to save Rs 500 a year in maintenance. The new machine will require Rs 750 each year for technical support. We will depreciate the machine @ 40% over 5 years under the WDV method of depreciation with an expected salvage value of Rs 5,000. The effective tax rate is 35%. Assume that an existing machine can be sold for Rs 6,000. Compute the following: i) Net incremental cash flows for the project ii) Compute the NPV and IRR of the project for project acceptance at 10% hurdle The Smith Company is a beauty products company that is considering a new hair growth product. This new product would encourage hair growth for persons with thinning hair. The new product is expected to generate sales of Rs 500,000 per year and would cost Rs 300,000 to produce each year. It is expected that the patent on the new product would prevent competition from entering the market for at least seven years. Smith Company spent Rs 1,000,000 developing the new product over the past four years. The equipment to produce the new product would cost Rs 1,500,000 and would be depreciated for tax purposes as a 35% WDV. Smith's management estimates that the equipment could be sold after seven years for Rs 400,000. The marginal tax rate for Smith Company is 40%. Compute the following: i) Net incremental cash flows for the project ii) Compute the NPV and IRR of the project for project acceptance at 10% hurdle 5. The Nobel Dynamite Company is considering a new packing machine. The existing packing machine cost Rs 500,000 five years ago and is being depreciated @ 20% using WDV over a 10-year life Nobel's management antimates that