C. Johor Plastic Sdn. Bhd. (JPSB), has a chance to invest in a company, Mask Jaya Sdn. Bhd (MJSB) that manufactures medical mask for public usage which is very high demand during Covid-19 pandemic. JPSB understands that the Covid-19 cases are reducing and the future demands of wearing mask is uncertain. JPSB, however, is willing to take the risk since the estimated income is very high. The following information on JPSB investment analysis are as below: A year Sales RM 10,000,000 Salaries and benefits 250,000 Insurance 100,000 Office expenses 80,000 Utilities 120,000 Rent 100,000 Other information: i. ii. The variable cost of goods sold would be 60% of sales revenue. Other fixed assets would cost RM5, 000,000 and have an estimated service life of 20 years, with no salvage value at the end of the service life. If JPSB does not invest in the MJSB, it could invest in another plastic company that will give the accounting rate of return (ARR) of 60%. REQUIRED: (a) (b) (c) Determine the net annual income that JPSB would realize from investing in MJSB. Ignoring income taxes. (Use the contribution approach format income statement). (5 Marks) If JPSB wants a payback period of two years or less, determine whether the JPSB should invest or not in MJSB. (2 Marks) Compute the accounting rate of return that would be obtained by JPSB. Based on the accounting rate of return, explain whether JPSB be better off financially investing in another plastic company or not. (3 Marks)