B. Assume the maximum payback period is 4 years. Initial outlays for the project is RMIT, 000. These investments generate annual cash flow as shown below: Year 1 2 3 4 5 Cash flow after tax RM3,000 RM1,000 RM2,000 RM2,000 RM4,000 i) Calculate the payback period. (5 marks) Company X is considering purchasing a new machine. Cash flow after tax is as follows: ii) Year 1 2 3 4 5 Cash flow after tax RM29,000 RM30,000 RM25,000 RM22,000 RM20,000 FIN123 (TEST)/ Page 3 of 4 If a firm has a required rate of return of 11%, calculate the net present value of cash flow after tax. Given the initial outlay is RM80,000. (4 marks)