Cap Stone Sdn$.$ Bhd$.($CSSB$)$ is a manufacturer of tiles and mosaic. CSSB anticipates a projecting growth in sales to RM$500,000$ over the next four years. Therefore, CSSB is planning to purchase of a new equipment with an estimated cost of RM$1,200,000$ And an additional cost on shipping and installation will be RM$20,000$ and RM$45,000,$ respectively need to be included. The new machine will have a $4-$year useful life and will be depreciated to zero using the straight$-$line method.

The production cost is expected to increase to RM$20,000$ every year. However, there will be a saving of RM$20,000$ per year on labour expense. CSSB expects an increase in inventories to RM$220,000$ and accounts payable to RMI $70,000.$ The change in Net Operating Working Capital is expected to be fully recovered at year $4.$ The machine is expected to have a disposal value of RM$30,000.$ CSSB uses an $13\%$ discount rate for capital budgeting purposes and the firm's income tax rate is $40\%.$

Based on the above information, you are required to answer the following questions.

a$.$ Calculate the project's initial outlay.

b$.$ Determine the Net Present Value NPV of the proposed project

c$.$ Explain whether CSSB should proceed with the project or not.

d$.$ Determine the payback period.

e$.$ Determine the discounted payback period.