n_| QUESTION 2 (20 MARKS) (a) The software company ABCorp posted a year-end operating loss of $5.3 million. Reportedly, $1.7 million of the loss stemmed from its foreign language division. ABCorp has decided to invest $20 million of its retained earnings with interest rates at 7 percent to purchase three-year rights to Easmord, a software package that converts generic word processor les saved as Japanese text into English. First-year sales revenue from the software was $7 million, but thereafter sales were halted pending a copyright infringement suit filed by another company, DEFCorR. ABCorp lost the suit and paid damages of $1.7 million. Mr Ali, the ABCorp manager who was fired over the incident, was quoted as saying, \"I'm a scapegoat. I projected annual sales of $7 million per year for three years. My sales forecasts were right on target, but I was fired.\" Do you know why Mr Ali was fired? You must support your answers with some calculations. CLO2 (6 Marks) (b) Malaysian Airline MAS) ies passengers between Sarawak and Kuala Lumpur, making one-round trip daily using a leased Airbus A30 aircraft. Assume the number of passengers served daily as the output for the company. Explain briey whether each of the following costs is variable or fixed costs. CL02 (8 Marks) i. Cost in-ight snacks and beverages for passengers. (2 marks) ii. Fuel expenditures for Boeing 737 aircraft. (2 marks) iii. Salary of the flight attendants. (2 marks) iv. Monthly lease payment for Airbus A30. (2 marks) (0) You are given a discount rate of 6.5 percent, calculate the present value of a $5 000 profit payment to be received at the end of: CL02 (6 Marks) i. One year (2 marks) ii. Three years (2 marks) iii. Five years (2 marks)