please show all the calculation and formula used.

Question 3 a) ABC Company plans to buy a new machine and the cost of it is RM800,000 which has an expected useful life of 5 years. An additional investment of RM90,000 for working capital at the beginning of the operation. At the end of the useful life the machine could be sold for a scrap value of 5% of the initial purchase cost of the machine. The production and sales using the new machine is expected to be 100,000 units where each unit is sold for RM16 per unit and will incur variable cost of $11 per unit. The incremental fixed cost arising from the operation of the new machine will be $160,000 per year. The company's after tax cost of capital is at 11% which it uses as a discount rate in its investment appraisal. The company pays the tax on their profit one year in arears which is at an annual rate of 30%. Tax allowable depreciation and inflation should be ignore in this case. Required: (i) Compute the Net Present Value (NPV) of investing in this new machine and advise the management of the company whether to accept this investment. (13 marks) (ii) Compute the Internal Rate of Return (IRR) of investing in thas new machine and advise the management whether this investment is accepted or not. (6 marks) (b) The marketing director is proposing that the company should use payback period or return on capital employed (Accounting Rate of Retum) when evaluating investment projects. The director has mentioned that target payback period should be three years and the return on capital employed should set at 20%. Projects which are accepted should fulfil either of the criteria. Required: As the newly recruited finance executive, critically discuss the validity of the statement made by the marketing director in regards to the two methods. (6 marks) (c) Corona Ltd is planning to replace a molding machine in the company. They have obtained the quotation for two machines, Astra and Modena. (Simba and Pumba.) Astra will cost. $16,000 and the net cash inflow from the machine is expected to be $8,000 per annum for the next 5 years. Modena will cost $10,000 and the net cash inflow from the machine is 56,000 per annum and this machine has a useful life of 3 years. The cost of capital for Corana Ltd is 10% Required: Advise the management on which machine to purchase using the Equivaleat Annual Cost method: (8 marks) (Total: 33 marks)