Please provide the answer with working table

5 / 5 75% Jei KRA Entertainment Berhad is negotiating for the rights to manufacture and sell superhero- themed toys for a three-year period. At the end of year 3, KRA Entertainment plans to liquidate the assets from the project. In addition to the facts and assumptions below, assume that working capital must be invested immediately in year 0) and will be fully recovered at the end of year 3, and that no incremental overhead expense will be incurred from the project. Facts and assumptions (RM, thousands) Marketing research costs, to date Initial cost of new equipment Expected life of equipment (years) Salvage value Depreciation method Selling price of new equipment at the end of year 3 Incremental annual sales (years 1 through 3) Incremental annual production costs Incremental annual selling and administrative expenses Tax rate Working capital required (% of sales) 20,000 250,000 3 0 Straight-line 125,000 350,000 160,000 40,000 30% 15% The beta factor of this new investment is 1.5. The company has a target capital structure of 50% equity and 50% debt. The cost of debt after-tax is 8%. The risk-free rate is 4% and the market risk is 8%. Required: a) What is the cost of equity for the new project? (5 marks) b) Calculate the initial cash outflow associated with the new project. (2 marks) c) Calculate the Net Present Value (NPV) if the company decided to proceed with the new project (6 marks) d) Should the company proceed with the new ventures? (2 marks) e) If KRA Entertainment Berhad changes its structure for this project to 20% equity and 80% debt, in your opinion, what will be the implication to the project