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{a1 Jackson is an engineer in an international company. His annual income is $3 million a year. Due to the outbreak of Coronavirus in Hong

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{a1 Jackson is an engineer in an international company. His annual income is $3 million a year. Due to the outbreak of Coronavirus in Hong Hung and the lack of local production of medical mask, he considers to open a local company to produce this product. Besides the data of monthly operational expenses found in following chart, Jackson needs to spend $40,000 to examine his rented industrial building to ensure a clean factory environment which can meet the I50 13405 standard before his production starts. In the meantime, he needs to order 2 set of machines which cost $200,000 each fmm Taiwan. The estimated resell value is $150,000 each after one year. Monthly operational expenses Raw materials as {Ad min Staff] Rent 100,000 20,000 dm Ell ao,ooo 1m,\" 1 Currently, Jackson owns $5 million in shares. To finance the setup capital of this medical mask company, Jackson needs to sell half of his shares which can yield the dividends of $250,000 a year. In orderto run his new company, Jackson has to quit his currentjob. Since he targets both the local and overseas markets, Jackson estimates the total revenue is $3 million for the rst year of operation. Calculate the annual Economic prot of Jackson's new company for the first year of operation. list the cost items and show your workings. Do you recommend Jackson to start his new business? Explain briey. {10 marks} lb} Ideal Co. Ltd is a local company which produces medical mask. Due to the outbreak of Coronavirus in Hong Kong, the CED considers buying a new set of machines to enlarge the production scale. TWO models of the same budget {$200,000} are available and the information is shown below: $115,000 $135,000 $25,000 $20000 Annual electricityr consumption $30,000 $}'5,000 Whidr set of machines will you suggest the Company to purchase? Explain briey with relevant data and working. [5 marks}

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