Your company has just signed a six-years contract with the Malaysian Government for a community project. You are investigating the purchase of a heavy construction equipment for this project. The equipment cost RM90,000 and qualifies for seven-year MACRS with GDS depreciation. In year six of the contract, you are expected to be able to sell the equipment for RM45,000. The projected operating expenses for the equipment are RM18,000 annually and the expected revenue generated is RM40,000 annually within those 6 years. The effective income tax rate is 40%, and the after-tax MARR is 6%. i) Will your company gain profit, for this six-years contract? Justify your answer. ii) What is the simple payback period based on after-tax cash flow of the purchase? iii) Based on your answer in (ii), if you are going to find the discounted payback period of the cashflows, what would it be? (No calculation is required. Provide your answer through explanation based on the theory.) Your company has just signed a six-years contract with the Malaysian Government for a community project. You are investigating the purchase of a heavy construction equipment for this project. The equipment cost RM90,000 and qualifies for seven-year MACRS with GDS depreciation. In year six of the contract, you are expected to be able to sell the equipment for RM45,000. The projected operating expenses for the equipment are RM18,000 annually and the expected revenue generated is RM40,000 annually within those 6 years. The effective income tax rate is 40%, and the after-tax MARR is 6%. i) Will your company gain profit, for this six-years contract? Justify your answer. ii) What is the simple payback period based on after-tax cash flow of the purchase? iii) Based on your answer in (ii), if you are going to find the discounted payback period of the cashflows, what would it be? (No calculation is required. Provide your answer through explanation based on the theory.)