ABC Machine
RM125,000;
bought 6 years ago
XYZ Machine
210,000
Purchase price
Remaining 4 years
RM10,000
RM20,000
5 years
RM25,000
RM60,000
Transportation cost
Import duties
Useful life
Salvage value
Inventories
Market price
Annual maintenance costs
Annual salary
Annual sales
Annual fred costs
Depreciation is using straight-line method
Cost of capital is 12%
Corporate tax rate is 28%
Investment tax credit is 10%
RM30,000
RM55.000
RM10,000
RM50,000
RM120,000
RM12,000
RM30,000
RM200,000
RM35,000
Required:
a)
Calculate the following:
1)Initial outlay (t = 0)
2) differential cash flow (t=1 to 5)
3) terminal cash flows (t=5)
4) payback period (pbp)
5) net present value ( NPV)
6) profitability index (PI)
7) internal rate of return (IRR)

b) should MCO bhd replace the existing machine? why?

please help me i need have no idea how to solve this
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