Pohon Sdn Bhd $($PSB$)$ purchased a RM$700,000$ machine to manufacture a specialty tap for

electrical equipment. The tap was in high demand and PSB could sell all that it could

manufacture for the next five years. The government exempted taxes on profits from new

investments in order to encourage capital investments. This legislation was not expected to be

altered in the foreseeable future. The equipment was expected to have five years of useful life

with no salvage value. The company employed straight$-$line depreciation. The net cash inflow

was expected to be RM$180,000$ each year for five years. Olsen uses a rate of $9\%$ in evaluating

its capital investments.

Required: Round all answers to $2$ decimal places $($e$.$g$.,12\mathrm{.}34\%).$

$($a$)$ Calculate the payback period for this proposed investment. $($Assume that cash inflows

occur evenly throughout the year.$)$

$($b$)$ Calculate the project's accounting rate of return $($ARR$)$ based on the initial investment.

$($c$)$ Calculate the accounting rate of return $($ARR$)$ based on average investment, where the

latter is defined as a simple average of beginning$-$of$-$project net book value and end$-$of$-$

project net book value

$($d$)$ Calculate the internal rate of return $($IRR$)$ of this proposed investment. $($Note: To answer

this question, students need to refer Table $-$ Appendix $1)$