Question: Please help me answer all i will give good rating. urgent a) Due to current outbreak of Covid-19, Hartalega Holding Berhad received a lot of

Please help me answer all i will give good rating. urgent

Please help me answer all i will give good rating. urgent a)

a) Due to current outbreak of Covid-19, Hartalega Holding Berhad received a lot of orders from local and overseas buyers. The company needs to increase its production capacity. HHB is purchasing a machinery that will cost RM1.8 million. The purchased machinery has an economic life of 5 years. The company has chosen to arrange a term loan with a commercial bank to finance RM1.5 million over a period of 5 years with the interest of 8% a year on the balance remaining. The loan will be amortized over 5 equal payments over a 5-year period. (1) Determine the annual payments. (ii) Using the amortized loan table, show the interest and principal are paid each year. (iii) Term loans are one of the important sources of project financing. Discuss the advantages of term loans to HBB. b) HHB must earn a minimum rate of return of 8% to be adequately compensated for the risk of the following investment. Initial Investment RM1,500,000 End of Year Income Year 1 RM600,000 Year 2 300,000 Year 3 500,000 200,000 Year 4 Year 5 100,000 (1) Compute the IRR on this investment. (ii) Based on your finding in (i), Should HBB make the proposed investment?||

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