QUESTION 3 a) Metro Holdings Bhd intends to upgrade their production facility to meet its growing business expansion. The cost to upgrade the facility will be RM3 million, to be depreciated on a straight line to zero basis over a 5 years period of its useful life. The facility has an estimated pre-tax disposal price of RM500,000. An initial working capital of 4 percent of the investment cost is required and which is to be fully recovered at the end of its useful life. The required rate of return is 12 percent and tax rate is 25 percent Below are the additional information pertaining to this proposal: Annual Fixed Cost (RM) Sales Volume (units) Selling Price per unit (RM) Variable Cost per unit (RM) Year 1 - 2 200,000 52,000 30 13 Year 3-5 220,000 68,000 35 15 D) Determine all the relevant cash flows associated with this proposal. (8 marks) ii) Compute the project's Internal Rate of Return (IRR), Justify whether to accept or reject the proposal (6 marks)