Refer to the table given below to estimate the initial, operating and terminal cash flow from undertaking the project. Use NPV criteria to advise whether the firm should undertake the project.

Weighted Average Cost of Capital $-12\%$

$(17)$

New machine price

$380,000\mathrm{.}00$

Installation cost

Old machine cost

$240,000\mathrm{.}00$

bough $3$yr back

Depreciation rate

$20\%,32\%$ and $19\%$ for three years

Old machine market value

Tax rate

$40\%$

Firm expects that Rs $36,000$ increase in current assets and Rs $18,000$ increase in currrent liabilities will accompany the replacement and continue for the next three years which will be refundable at the time of project's expiry.Refer to the table given below to estimate the initial, operating and terminal cash flow from

undertaking the project. Use NPV criteria to advise whether the firm should undertake the project.

Weighted Average Cost of Capital $-12\%$