2. Technion is considering a project to buy a machine for their production in Klang. It requires a RM6 million investment and offers a cash flow (after-tax) of 6 years RM2.5 million per year. It is expected that the project is financed by 50% debt and 50% equity, respectively. The unlevered cost of equity is 15%, which reflects the project's business risk. The debt outstanding for the 6 years is as follow: Year Debt outstanding at the start of year (RM'm 3.0 2.5 2.0 1.5 1.0 0.5 (a) Given the interest rate is 9% and the tax rate of 30%, the debt will be paid off in equal annual instalment over the project's 6-year life. Calculate APV. (b) Calculate the APV if the firm incurs issue costs of RM100,000 to raise the required equity and they also receive the subsidy from the government of RM250,000