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QUESTION 6 (15 Marks) CLO CLO1 (a) Marks 10 CLO3 (b) 5 A gas lift equipment costs RM120,000 with zero salvage value for the useful life of 5 years. Annual sales and operating costs are forecasted at RM100,000 and RM80,000, respectively. The company pay 38% taxes and can choose to use either Double Decline Balance Depreciation (DDB) or Straight Line depreciation types. a) Generate the annual cash flow for both depreciation types. (10 Marks) b) Determine the best choice of depreciation to the company if the company wants to claim tax shield as early as possible