Question 1 ABC Berhad is considering the purchase of a new machine, which will cost RM280,000, plus an additional RM2,500 to ship and install. The new machine will have a 6-year useful life and will be depreciated to zero using the straight-line method. The machine is expected to generate new sales of RM40,000 per year and is expected to save RM12,000 a year in labor and electrical expenses over the next 6-years. However, maintenance cost will increase by RM5,000 a year. Upon buying the machine, it requires inventories to increase by RM30,000 and accounts payable increase by RM15,000. The change in Net Operating Working Capital is expected to be fully recovered at year 6. The machine is expected to have a disposal value of RM50,000. ABC Berhad uses a 10% discount rate for capital budgeting purposes and the firm's income tax rate is 28%. What is the machine's NPV? a