The current sy company intends to improve on existing system of water pumping and supply. (6Mks) electric pump costing built 10 years ago at a cost of 4 million and uses a diesel pump. An 100,000m3 of water is Kshs 5 million will be installed to replace the diesel pump. Currently and stocks stands 100,000 and 130,00 month, this will improve to 120,000 p.m. Currently cash pump. A 1m3 of water retails 130,000 respectively and this will increase by 10% each with new Kshs 4 million loan, the rest Kshs 20 . The investor will finance the new investment with a installments for 5 years starting will come from own saving. The loan will be repaid in equal balance. Diesel worth Kshs 40,00 from year one, with an interest rate of 10% p.a. on reducing 30,000 p.m. from current Kshs 40 is used p.m. Labour and maintenance cost will reduce to Kshs p.m. Assume annual depreciation is 4000 p.m. Tax rate is 20%. Electricity will cost Kshs 10,000 of the 5th year at 4% of purchase pris 1.6% of cost of new pump. The pump will be disposed at end Develop the cash flows for the price. Illustrate the final (net) for the new investment for the 5 years The current sy company intends to improve on existing system of water pumping and supply. (6Mks) electric pump costing built 10 years ago at a cost of 4 million and uses a diesel pump. An 100,000m3 of water is Kshs 5 million will be installed to replace the diesel pump. Currently and stocks stands 100,000 and 130,00 month, this will improve to 120,000 p.m. Currently cash pump. A 1m3 of water retails 130,000 respectively and this will increase by 10% each with new Kshs 4 million loan, the rest Kshs 20 . The investor will finance the new investment with a installments for 5 years starting will come from own saving. The loan will be repaid in equal balance. Diesel worth Kshs 40,00 from year one, with an interest rate of 10% p.a. on reducing 30,000 p.m. from current Kshs 40 is used p.m. Labour and maintenance cost will reduce to Kshs p.m. Assume annual depreciation is 4000 p.m. Tax rate is 20%. Electricity will cost Kshs 10,000 of the 5th year at 4% of purchase pris 1.6% of cost of new pump. The pump will be disposed at end Develop the cash flows for the price. Illustrate the final (net) for the new investment for the 5 years