PART B Digital Technology Sdn Bhd manufactures microchips. The company is facing a sudden surge in demand for microchips in January 2022. The company is considering investing in an additional state-of the art testing facility to cater for the increase in the production of microchips to meet the increasing demand locally and overseas.

The following information has been compiled on the new testing facility: RM Investment cost for the new facility & equipment 160,000 Cost of installation and commissioning 90,000 Annual expected cash inflow (revenue) 75,000 Annual expected cash outflow (expense) 14,000