Question 1 Restu AG is considering to adding a new invented machine to replace the existing machine to all their outlet. The new machine initially requires fixture and fittings costs of approximately RM6,000. The old machine was bought two years ago with cost of RM5,000 with a depreciation of four years based on straight line method. The old machine market value at year two is RM4,100 Restu AG has identified that without the replacement, the loss experienced from maintenance was RM14,950 per year and with the machine replacement, the expected loss will be reduced to RM5,600 per year. The new machine required a warranty expenses of RM2,450 in year one. The management decided to depreciate the new machine for three years and it is based on straight line method. The new machine will also result to increase an annual cleaning expense of RM2,200 per year. The upgrade expenses at the end of year two is RM3,370. The new machine also can reduce the disruption cost of RM900 and RM3,200 in year one and year three respectively. Restu AG management's opportunity cost of capital for the new machine is 25 percent and the tax rate is 18 percent. Based on the information given, as the CFO of Restu AG's, you are requested by your Board of Director to give an opinion for the new machine. Support your opinion by constructing the Restu AG's new machine Net Present Value (NPV) for the three years