PLEASE DON'T USE EXCEL TO SOLVE THESE QUESTIONS

QUESTION 4 (25 MARKS) H&H Corporation secured a contract to supply spare parts for local made car manufacturers. In order to fulfill the requirement for the new contract H&H Corporation need a new machine which cost the company RM550,000, RM250,000 for additional inventory and RM40,000 for additional accounts receivable. Short-term debt is expected to increase by RM135,000 and long-term debt is expected to increase by RM380,000. The project has a 5-year life. The fixed assets will be depreciated using straight-line to a zero- book value over the life of the project. At the end of the project, the fixed assets can be sold for 33 percent of their original cost. The net working capital returns to its original level at the end of the project. The project is expected to generate annual sales of RM750,000 and costs of RM330,000. The tax rate is 30 percent and the required rate of return is only 6 percent. Required: a. Calculate the initial Capital Spending and Net Working Capital for this project. (4 marks) b. Calculate the amount of the after-tax salvage value from the sale of the fixed assets at the end of this project? (Round your answer to whole ringgit) (4 marks) c. Identify the amount of the Operating Cash Flow for each year of the project. (5 marks) d. Compute the Discounted Payback Period and the Net Present Value for this project. (12 marks)