A polyurethane company is decided to purchase a motorized feature for pulling parts from an injection moulding machine. The use of the new feature is anticipated to cause a decrease in the production...

Extracted text: A polyurethane company is decided to purchase a motorized feature for pulling parts from an injection moulding machine. The use of the new feature is anticipated to cause a decrease in the production costs by RM 200,000 per year in the first 2 years and by RM 300,000 per year in the next 3 years. By drawing a cash flow diagram, evaluate the present worth of the cost saving if the interest rate on the investment is 15% per year.