There are FOUR (4) questions in this section. Answer ALL questions in the Answer Booklet. Question 1 Vanda Berhad is considering purchasing of a new spraying machine, which will cost RM240,000, plus an additional RM3,500 to ship and modify. The new machine will have a 5year useful life and will be depreciated to zero using the straight-line method. The machine is expected to generate new sales of RM75,000 per year and is expected to save RM15,000 in labour and electrical expenses over the next 5-years. Upon buying the machine, it requires inventories to increase by RM7,000 and accounts payable increase by RM5,000. The change in Net Operating Working Capital is expected to be fully recovered at year 5 . The machine is expected to have a disposal value of RM30,000. Vanda Berhad uses a 12% discount rate for capital budgeting purposes and the firm's income tax rate is 24%. a) Calculate the project initial outlay. (4 Marks) b) Calculate the Discounted Operating Cash Flow throughout the 5 years useful life of the new machine, (10 Marks) c) Calculate the NPV of the proposed project. (5 Marks) d) Should Vanda Berhad proceed with the project? (1 Mark) (Total: 20 Marks)