Glab operates an online taxi booking service. As a result

Glab operates an online taxi booking service. As a result of technical advances in technology, the existing servers have to be replaced. The company decided to come up with two competing projects.

Project 1 is a booking service via the web while the Project 2 is a booking service via mobile.
The company wanted the cash flow of both projects to be tracked separately.
A different technical consultant is hired at a cost of RM 80,000 for each project at the start of the project in 2021.

The details of each system are as follows:

                                                              Project 1              Project 2

                                                                RM                            RM
Initial investment                                600,000                800,000
Residual value                                      60,000                    50,000
Contribution per annum                    580,000                  600,000
Fixed maintenance costs per annum 20,000                   40,000
Other fixed operating costs per annum 360,000          305,000

Estimated useful life 3 years 5 years

The maintenance costs are payable annually in advance. All other cash flows apart from the initial investment should be assumed to occur at the end of each year.
Depreciation has been calculated using the straight line method and has been included in other fixed operating costs.
All excess cash will be sent to the current account of the holding company. The company will loan cash funds from their current account if there is a shortfall of cash for the year.
At the end of each year, the project will have no cash balances.

Required:
Prepare a separate cash budget each of the projects covering 2021 to 2026.

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