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Please solve with detailed steps. QUESTION 1 Lee and Partners Sdn. Bhd. intent to invest in a new machine to increase the production volume. You

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Please solve with detailed steps.

QUESTION 1 Lee and Partners Sdn. Bhd. intent to invest in a new machine to increase the production volume. You are assigned to calculate the 3 given options. Assume that the business will last 5 years with a minimum attractive rate of return (MARR) of 10%. The options are summarized in Table 1. Option 3 Table 1: Cash flows summary of the investments Option 1 Option 2 Initial Investment, RM 5,000 10,000 Net Annual Revenues, RM/year 1,500 2.020 Salvage value, RM 2.000 2.000 14,000 5,033 2.000 (a) Construct a cash flow diagram for each option. (b) Determine which option will be chosen by using present worth analysis

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