Question 1 Bougenvilla Corporation is considering replacing one its old machine with a new and more efficient machine that will cost RM450,000. In addition, RM10,000 will be incurred for installation. The machine will be depreciated using the straight line method over a useful life of 10 years, and has zero salvage value. Bougenvilla Corporation's cost of capital is 5 percent and the corporate tax rate is 24 percent. By replacing the old machine, the other information are gathered as follows: (i) The labour cost can be reduced by RM40,000 per year. (ii) Sales are expected to increase by RM150,000 per year. (iii) The cost of defects will be reduced by RM6,000 per year. (iv) The operating expenses will be decreased by RM5,000 per year. (c) Calculate the internal rate of return of Bougenvilla Corporation. (7 marks) [25 Mark1