PART B Gaya Printers Sdn Bhd operates a printing business. Currently, it has a printing machine which was purchased a few years ago. With the current growth in its printing business, the current machine may reach it's maximum printing capacity in the next 6 months. Management is thinking of replacing the current machine with a digital automated printing machine which would substantially reduce its operating cost and increase its revenue. The following cost data has been estimated by the costing department: Continued... Cost of the new digital automated printing machine Cost of installation and commissioning the new machine Book value of the current printing machine Salvage (sales) value of the current printing machine Annual operating cost for the new digital printing machine Annual revenue from the new digital printing machine RM 5,000,000 125,000 2,000,000 500,000 300,000 1,400,000 The new digital automated printing machine has a useful life of four (4) years. The estimated depreciation charges for the new machine is as follows: Year Depreciation charges (RM) 1 2,082,500 2 1,249,500 3 749,700 4 449,820 The salvage value of the machine is estimated to be RM 1,005,120 at the end of year 4. The taxation rate is 36% and the company has a required rate of returns of 10%. Required a) Calculate the net present value (NPV) of the digital automated printing machine. Will Gaya Printers Sdn Bhd proceed with the investment? (Show all calculations & schedules. Round up all decimal points)