A. Electron Sdn Bhd is considering the purchase of a new equipment that will speed up the process for producing external hard disc. The equipment will require an outlay of RM800,000. The equipment will last five years with no expected salvage value. The annual cash revenues and cash expenses of the project is RM1,300,000 and RM1,000,000 respectively. Note: The company's policy stipulates that the required rate of return of all investments is 10% and the payback period which less than 3 years. Required: a. Compute the payback period and the net present value of the project. (5 marks) b. Based on your answer in (a) above, advise Electron Sdn Bhd on whether to purchase the equipment