PLEASE HELP ME ON THIS ...........................EMERGENCY ................

Q2. (a) In response to the increasing demand, Acme Glove Berhad is proposing to replace its existing machinery with a more modern equipment. The new equipment costs RM10,000,000 with an additional installation cost of RM20,000. The company expects to sell its fully depreciated existing machine for RM1,000,000. If the new equipment is used, there will be some changes in the working capital requirement. Inventory levels will increase by RM40,000; accounts receivable will increase by RM6,000; and accounts payable will increase by RM21,000. The investment in working capital is expected to be fully recovered at the end of the equipment's life. The use of the new equipment is expected to cut manufacturing costs from its current level of RM7/unit to RM4/unit. However, the production level will remain the same at 800,000 units. The useful life of this new equipment is 8 years, and it will be depreciated using straight-line basis. Best estimates indicate that the new equipment can be sold off for RM50,000 at the end of its useful life. The applicable tax rate for Acme Glove Berhad is 30%. The market return is 7% percent, the risk free rate is 2%, and the company's beta is 1.2. Decide whether the company should replace the old machine or not. (16 marks)