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Your company is considering a new machine which cost RM135,000. Two months ago, you sent your company engineer to a training workshop demonstrating the new
Your company is considering a new machine which cost RM135,000. Two months ago, you sent your company engineer to a training workshop demonstrating the new machine's operation and efficiency. In addition, you also instructed the marketing team to survey the market for the next four years. In total, your company spent RM22,300 if the new machine is purchased, it will require RM8,800 of installation and modification cost it will be depreciated for four years using straight line method. Net working capital is expected to increase by RM6,000 at startup and the full amount will be recovered at the end of year four. Earnings before interest and taxes (EBIT) will be RM32,000 annually throughout the four-year period. At terminal, this machine can be sold at RM15,000 only Tax rate of your company is 28 percent (a) Apakah kos projek ini? What is the initial cost of this project? (4 markah/marks) (b) Tentukan aliran tunai tahunan projek dari tahun 1 hingga tahun 4. Determine the annual cash flow of the project from year 1 to year 4. (4 markah/marks) (c) Kira aliran tunai terminal Calculate the terminal cash flow? (3 markah/marks)
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