Question: Gas Supply Project The project cost for a four-year gas supply project is RM800,000, including the purchase of a machine, costs RM300,000. Working capital requirement

 Gas Supply Project The project cost for a four-year gas supply

Gas Supply Project The project cost for a four-year gas supply project is RM800,000, including the purchase of a machine, costs RM300,000. Working capital requirement at the beginning of the project is 30% of the initial outlay. At the end of the project, the working capital is recoverable and the machine can be salvaged for 15% of the machine's cost. The respective operating cash flows for years 1, 2, 3 and 4 are: RM700,000, RM300,000, RM300,000 and RM220,000. The project is appraised based on Capital Budgeting Model at a discount rate is 5.63%. Type your answer... 1 point FV of OCF is Year 3 is RM Type your answer... 2 points Total FV of the OCF is RM Type your answer... 1 point The NPV of the project is RM_ Type your answer... 8 9 10 --DO --D --D

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