Question: BETA Berhad is considering the purchase of a new printing machine under its expansion program. It costs RM500,000 and requires and installation costs of RM50,000. The old printing machine has zero terminal book value and five years of useful life remaining. It is being depreciated using the straight-line method. It was purchased five years ago for RM250,000, and can be sold today for RM100,000. With the use of the new printing machine, sales in each for the next five years are expected to increase by RM250,000, and expenses (excluding depreciation) will represent 50% of sales. This new printing machine will not affect the firm's net working capital requirements. | The new printing machine is estimated to have a useful life of five years with zero salvage value and will be depreciated using the straight-line method. The firm is subject to a 25% tax rate, and its cost of capital is 12%. The desired payback period is five years. * Tax saving from the sale is RM6,250 Determine the initial outlay and annual after-tax operating cash flows attributable to the new printing machine. Assist the management of the company in evaluating this project. Support your recommendation by using the following capital budgeting techniques: A) Payback period. B) Net present value (NPV). C) Internal rate of return (IRR).