The Go-Shop Company wishes to introduce a new line of pressure cooker (PC) to the audience. The followings are the detailed of the new product:

Items	Explanation
Retail price	RM759.00 per piece
Fixed cost	RM500,000 per year
Variable cost	25% of the retail price
Working Capital Requirement	Cash in hand: 1% of sales revenues
	Inventory: 1.5% of sales revenues
	Account receivables: 2% of sales revenues
	Account Payables: 3% of variable costs

The project cost is expected to be RM1.2 million. The projected sales of the PC 2,000 units in the first year and expected to increase by 20% year on year until year 4, and then decline by 30% in the final year.

The project also requires the company to upgrade the showroom fixtures and fittings which will costs RM120,000, to be depreciated based on MACRS 5-year convention, and in Year 5, RM25,000 can be salvaged. The tax rate is 28% and cost of capital is 5.28%.

1. The book value of the fixtures and fittings at Year 5 is RM_________. (2 decimals)

2. The net proceed after tax of the fixtures and fittings at Year 5 is RM________. (2 decimals)

3 Earning Before Interest and Tax in Year 1 is RM__________. (2 decimals)

4 The Net Profit After Tax in Year 2 is RM____________. (2 decimals)

5 Sales Revenues in Year 3 is RM__________. (2 decimals)

6 . Variable Cost in Year 4 is RM_________. (2 decimals)

7 . Net Profit After Tax in Year 5 is RM__________. (2 decimals)

8 . Working Capital Requirement in Year 1 is RM___________. (2 decimals)

9 .Working Capital Requirement in Year 3 is RM___________. (2 decimals)

10 . Working Capital Requirement in Year 5 is RM___________. (2 decimals)

11. The initial outlay of the project is RM__________. (2 decimals)

12 . The cash flow/ free cash flow in Year 1 is RM____________. (2 decimals)

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The cash flow/ free cash flow in Year 3 is RM____________. (2 decimals)

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The cash flow/ free cash flow in Year 4 is RM____________. (2 decimals)

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1 point

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The cash flow/ free cash flow in Year 5 is RM____________. (2 decimals)

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1 point

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Total Present Value of the cash flow/ free cash flow is RM____________. (2 decimals)

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The Net Present Value (NPV) of the project is RM__________. (2 decimals)

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The Internal Rate of Return (IRR) of the project is __________%. (2 decimals)

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Total Future Value of the cash flow/ free cash flow invested at the same rate is RM____________. (2 decimals)

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