Skim Holdings Bhd is considering purchasing a new machine with a cost of RM221,000 to increase the crude palm oil production efficiency to increase the demand in the market over the next 5 years. The machine has a useful life of 5 years, and the company uses the simplified straight-line depreciation method. The installation cost of the machine is RM21,000 and the net working capital required at the time of installation is RM6,000 and is recoverable at the end of 5 years. This project will increase annual return by RM95,000, but the operation cost also will increase by 32% of return incremental. The machine is expected to have a salvage value of RM40,000 at the end of its life. The cost of capital is 12% and the tax rate is 30%. Calculate the NPV of the project. Should Sime Darby have purchased the machine? Explain it.