Spotty Sdn Bhd plans to purchase a machine costing RM$18,000$ to save labour costs.

Labour savings would be RM$9,000$ in the first year, and labour rate in the second year will increase by $10\%.$

The estimated annual rate of inflation is $8\%$ and the company's real cost of capital is estimated at $12\%.$

The machine has a two year life with an estimated actual salvage value of RM$5,000$ realisable at the end of Year $2.$

Required:

Appraisal the investment of machine and advice Spotty Bhd whether to invest or not.