Seng sono considering taong to WWE Sdn. Bhd's trucks which catet around riversity and to see current trucks, Sending Sdn Bhd's lood trick business is tingimused KRY and to service the rising customers demand Serkam Auto, which specialises in modilying and selling food trucks, is where to see Bhd. at RM200,000 per truck. At the same time. Serving Sdn. Bhd. is able to take the data of RM230,000. The new food trucks will be deprecated using the straight line method wody One of the old trucks was bought 6 years ago at RM100,000 when Setting Sdn. Bhd started the best west bought 3 years ago at RM190,000. Both old trucks were being depreciated unting the strangtine meteo is 8 years. If the old trucks are not replaced today, it can still be used for authet 5 more years before being red truck Seruling Sdn. Bhd. hopes to sell off its food truck business in 5 years time to start a chain of testusets the stage de food truck is estimated to be RM70,000 per truck in 5 years' time. If the old food trucks are replaced today, it is estimated that this will help to increase the company rereby em Meanwhile, this would also lead to some changes in its operating costs as per the table below Operating costs per truck Old Trucks New Trucks Salary RM50,000 POBODO RM500 RM5,000 Fuel Costs 31.500 Service and repair costs RM3,000 pa In addition, it is estimated that the company's inventory would need to be increased by RM5,000 if the rea tracks were bought the end of year 5,50 per cent of this amount is recoverable The company's debt to equity ratio is 0.25 while its cost of equity and cost of debt are estimated to be around it annum respectively. The tax rate is 30% Required: (a) Calculate the company's weighted average cost of capital (b) Calculate the relevant present value of cash flows (on a net present value basis to determine whether sering schedul are the old trucks? cor Seng sono considering taong to WWE Sdn. Bhd's trucks which catet around riversity and to see current trucks, Sending Sdn Bhd's lood trick business is tingimused KRY and to service the rising customers demand Serkam Auto, which specialises in modilying and selling food trucks, is where to see Bhd. at RM200,000 per truck. At the same time. Serving Sdn. Bhd. is able to take the data of RM230,000. The new food trucks will be deprecated using the straight line method wody One of the old trucks was bought 6 years ago at RM100,000 when Setting Sdn. Bhd started the best west bought 3 years ago at RM190,000. Both old trucks were being depreciated unting the strangtine meteo is 8 years. If the old trucks are not replaced today, it can still be used for authet 5 more years before being red truck Seruling Sdn. Bhd. hopes to sell off its food truck business in 5 years time to start a chain of testusets the stage de food truck is estimated to be RM70,000 per truck in 5 years' time. If the old food trucks are replaced today, it is estimated that this will help to increase the company rereby em Meanwhile, this would also lead to some changes in its operating costs as per the table below Operating costs per truck Old Trucks New Trucks Salary RM50,000 POBODO RM500 RM5,000 Fuel Costs 31.500 Service and repair costs RM3,000 pa In addition, it is estimated that the company's inventory would need to be increased by RM5,000 if the rea tracks were bought the end of year 5,50 per cent of this amount is recoverable The company's debt to equity ratio is 0.25 while its cost of equity and cost of debt are estimated to be around it annum respectively. The tax rate is 30% Required: (a) Calculate the company's weighted average cost of capital (b) Calculate the relevant present value of cash flows (on a net present value basis to determine whether sering schedul are the old trucks? cor