Young Corporation is considering the purchase of a new machine which is expected to increase sales by RM10,000 in addition to increasing non-depreciation expenses by RM3,000 annually. Due to the sales increase, Young expects its working capital to increase RM1,000 during the life of the project. Young will depreciate the machine using the straight line method over the projects five year life to a salvage value of zero. The machines purchase price is RM20,000. The firm has a marginal tax rate of 34% and its required rate of return of 12%.

1. Calculate the machines initial outflow
2. The machines incremental after-tax cash flow
3. The machines incremental after tax cash flow in year 5.
4. The machines NPV