The NXC Semiconductor Research Centre has decided to purchase a spectrum analyzer for RM120,000 with a trade-in of their old equipment (asset class 36.0). The old system has a BV of RM15,000 during trade-in. The purchase of the new equipment will increase the companies' revenue by RM 30,000 annually, whereas the associated operating expenses are expected to be RM5,000 annually. Refer to Appendix for MACRS Class Lives and Recovery Periods and the GDS recovery rates, respectively. (i) Determine the General Depreciation System (GDS) depreciation deductions, taxable income, cash flow for income taxes and after-tax cash flow for this system, if an effective income tax rate of 45% is used by the company. (7 marks) (ii) Determine after-tax using present worth, PW if the after-tax MARR equals 0.75% per year. Evaluate whether the investment is profitable. (4 marks) The NXC Semiconductor Research Centre has decided to purchase a spectrum analyzer for RM120,000 with a trade-in of their old equipment (asset class 36.0). The old system has a BV of RM15,000 during trade-in. The purchase of the new equipment will increase the companies' revenue by RM 30,000 annually, whereas the associated operating expenses are expected to be RM5,000 annually. Refer to Appendix for MACRS Class Lives and Recovery Periods and the GDS recovery rates, respectively. (i) Determine the General Depreciation System (GDS) depreciation deductions, taxable income, cash flow for income taxes and after-tax cash flow for this system, if an effective income tax rate of 45% is used by the company. (7 marks) (ii) Determine after-tax using present worth, PW if the after-tax MARR equals 0.75% per year. Evaluate whether the investment is profitable. (4 marks)