Question: please show full clear working ( esspecially the depreciation working) Zaki Manufacturing Berhad is considering a new project that complements its existing business. The corporate
Zaki Manufacturing Berhad is considering a new project that complements its existing business. The corporate tax rate is 28% and the required rate of return is 15%. The machine required for the project costs RM1.2 million. The machine can be used for operation for 4 years. The machine will be depreciated using a 20% reducing balance method. At the end of 4 years it will be sold at its residual value. The marketing department predicts that sales related to the project will be RM1 million per year for the next four years. Operating expenses related to the new machine are predicted to be 40 percent of sales. The management also needs to add net working capital of RM200,000 immediately. The additional net working capital will be recovered in full at the end of the project's life. Evaluate the project. Explain to the management how
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