PLEASE SOME ONE HELP ME TO ANSWER THIS QUESTION I ALSO GOT 50 MINUTES TO ANSWER IT PLS

QUESTION 5 (20 MARKS: 48 MINUTES) Xhalida Drycleaning Sdn Bhd (XDSB) would like to purchase a new machine for cleaning large quilts and comforters. The current cleaning operations on quilts and comforters is done by hand. The new machine would cost RM12,500. The estimated service life is 12 years, at which time it is estimated that the machine could be sold for RM500. The company estimates that it would cost RM700 per year to operate the machine. The current costs of manual cleaning is RM3,000 per year. In addition to reduce the costs, the new machine would increase the dry cleaner's ability to clean quilts and comforters by 600 quilts per year. The company realizes a net contribution margin after tax effects of RM1.50 per quilt or comforter. A 10% rate of return is required on all investments. XDSB expects its tax rate to be 30%. REQUIRED: (a) Write a report to top management which would help them to decide either to purchase the new machine or not. Use Net Present Value (NPV) technique to support your calculations. (14 Marks) (b) Discuss THREE (3) strengths of NPV technique in evaluating the capital investment decision to convince the top management. (6 Marks) Present value interest factor, PVIF(in) Period 1% 3% 4% 5% 6% M 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 10.990 0.980 0.971 0962 0.952 0.943 0.935 0.926 0917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0833 20.980 0961 0.943 0.925 0.907 0.890 0.873 0857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.78 0.731 0.718 0.706 0.694 30.971 0.942 0915 0.889 0.864 0.840 0816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 40.961 0.924 0888 0.855 0.823 0.792 0.763 0.735 0.708 0.68 0.659 0.636 0.613 0.592 0.572 0.52 0.534 0.516 0499 0482 5 0.951 0.906 0863 0822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0456 0.437 0419 0402 60.942 0.888 0837 0.790 0.746 0.705 0.666 0.6300596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0390 0.370 0352 0335 70.933 0.871 0,813 0.760 0.711 0.665 0.623 0583 0.547 0.513 0.482 0.452 0.125 0.400 0.376 0.354 0333 0.314 0296 0279 80.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0467 0.434 0.404 0.376 0.351 0.327 0.306 0285 0.266 0249 0233 90.914 0837 0.766 0.703 0.645 0.592 0544 0.500 0.460 0424 0.391 0.361 0.333 0.308 0.284 0.263 0243 0.225 0209 0.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0463 0422 0386 0.352 0.322 0.295 0.270 0.247 0.22 0208 0.191 0.176 0.162 110.896 0.804 0.722 0.650 0.585 0.527 0475 0429 0388 0350 0.317 0.287 0.261 0.237 0.215 0.15 0.178 0.162 0.148 0.135 12 0.887 0.788 0.701 0.625 0.557 0.4970444 0397 0356 0319 0.286 0.257 0.231 0.208 0.18 0.18 0.152 0.137 0.124 0.112 13 0.879 0773 0681 0.601 0.530 0.469 0415 0368 0326 0290 0.258 0.229 0.204 0.182 0.163 0.16 0.130 0.116 0.104 0093 140.870 0.758 0.661 0577 0.505 04420388 0340 0299 0263 0.22 0.205 0.181 0.160 0141 0.18 0.111 0.099 0.088 0.078 15 0.861 0.743 0.642 0555 0.4810417 0362 0315 0275 0239 0.209 0.183 0.160 0.140 0.123 0108 009 0.084 0.074 0.065 16 0.853 0.728 0.623 0534 0.458 0.394 0339 0292 0252 0218 0.188 0.163 0.141 0.123 0.1070.098 0.081 0.071 0.062 0.054 17 0.844 0.714 0.605 0513 0.436 0.371 0317 0270 0231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.060 0.060 0.052 0.045 18 0.836 0.700 0.587 0494 0.416 0.350 0296 0.250 0212 0.1800.153 0.130 0111 0.095 0.081 0.00 0.059 0.051 0.04 0.038 19 0.828 0.686 0.570 0475 0.396 0.331 0277 0232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0,051 0.043 0.037 0.031 20 0.820 0.673 0554 0456 0.377 0.312 0258 0215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 25 0.780 0.610 0478 0375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.007 0.038 0.030 0.021 0.020 0.016 0.013 0.010 30 0.742 0.552 0.412 0308 0.231 0.174 0.131 0.099 0.075 0.057 0.04 0.083 0.025 0.020 0,015 0.012 0.009 0.007 0.005 0.004 35 0.706 0.500 0355 0253 0.181 0.130 0.094 0.068 0.049 0.036 0.026 0.019 0.014 0.010 0.008 0.006 0.004 0.003 0.002 0.002 40 0.672 0453 0307 0208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 0.008 0.005 0.0040.008 0.002 0.001 0.001 0.001 50 0.608 0372 0228 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.005 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 Present value interest factor of an ordinary annuity, PVIFA(i,n) Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 10.990 0.980 0971 0962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.898 0.885 0.877 0.870 0.862 0855 0.847 08400833 2 1.970 1.912 1913 1886 1859 1833 1808 1783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1605 1585 1.566 1547 1528 3 2.941 2.884 2829 2775 2.723 2673 2624 2.577 2.531 2.487 2.444 240 2361 2322 2283 2246 2210 2.174 2.140 2.106 4 3.902 3.808 3.717 3.630 3.546 3465 3.387 3.312 3.240 3.170 3.102 3.03 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 54.853 4.713 4580 4452 4329 42124100 3.993 3.890 3.791 3.696 3.616 317 3433 3352 3274 3.199 3.127 3.058 2.991 65.795 5.601 5417 5242 5.076 49174767 4.623 4.486 4.355 4231 4111 3.998 3889 3.784 3.685 3.589 3498 3410 3326 76.728 6.472 6230 6.002 5.786 5582 5.389 5206 5083 4.868 4.712 4.561 4423 4288 4.160 4.039 3.922 3.812 3706 3.605 87.652 7.325 7020 6733 6463 6210 5.971 57475.535 5335 5.146 4.968 4.799 4.639 4487 434 4207 4.078 3.954 3837 98.566 8.1627.786 7435 7.108 6.802 6.515 6.247 5.9955.759 5.537 532 5.132 4.946 4772 4.607 4451 4303 4163 4.031 109.471 8.983 8.530 8.111 7.722 7360 7.024 6.710 6.418 6.145 5.889 5.650 5426 5216 5019 4833 4.659 4494 4339 4.192 1110368 9.787 9253 8.760 830678877499 7.139 6.805 6495 6.207 5.93 5.687 5453 5234 5.029 4836 4.656 4486 4327 1211255 10.575 9.954 9385 8.863 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5660 5421 5.197 4.988 4.793 4611 4439 13 12.134 11348 10.635 9.986 9394 8.853 8.358 7.904 7.487 7.103 6.750 6.424 6.122 58425583 5342 5.118 4910 4715 4533 14 13.004 12.106 11296 10.563 9.899 9295 8.745 8.24 7.786 7.3676.982 6.62 6302 6.002 5.724 5468 5229 5.008 4802 4611 15 13.865 12849 11.938 11.118 103809712 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 58475.575 5324 5.092 4876 4.675 16 14.718 13.578 12561 11.652 10.838 10.106 9.447 8.851 8.313 7.8247.379 6.974 6.604 6265 5954 5.668 5405 5.162 493 4.730 17 15.562 14292 13.166 12.166 11274 10.4779.763 9.122 8.544 8.022 7.519 7.12) 6.729 6373 6.047 5.749 5475 5222 4.990 4775 18 16398 14.992 13.754 12.659 11690 10.82 10.059 9.372 8.756 8.2017.702 7.250 6840 6.467 6.128 5818 5.534 5273 5.033 4812 19 17226 15.678 14324 13.134 12.085 11.13 10.336 9.604 8.950 8.365 7.839 7.30 6.938 6550 6.198 5877 5584 5316 5.070 4843 2018.046 16351 14877 13.590 12462 11.470 10.594 9.818 9.129 8.5147.963 7.40 7.025 6.623 6259 5.929 5.628 5353 5.101 4870 25 22.023 19.523 17413 15.622 14.094 12.78 11.654 10.675 9.8239.077 8.422 7.843 7330 6873 6.464 6.097 5.766 5.467 5.195 4.948 3025808 22396 19.600 17292 15372 13.785 12.409 11.258 10.274 9.4278.694 8.055 796 7.003 6.566 6.177 5829 5517 5235 4979 3529409 24.999 21487 18.665 16374 14.49 12.948 11.655 10.567 9.648.855 8.176 7586 7.070 6617 6215 5858 5539 5251 4992 40 32835 27355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.7798.951 8.24 7.634 7.105 6.642 6233 5.871 5548 5258 4.997 50 39.196 31424 25.730 21482 18256 15.762 13.801 12.233 10.962 9.915 9.12 8.304 7.675 7.133 6.6616246 5880 5.554 5262 4.999