Q3 AMC Sdn Bhd is considering purchasing a new machine to improve one of its current production lines. Two types of machine are available on the market and the company plan only uses the service of either machine not more than ten years. Machine Pesona will cost them RM26,000. This machine has special requirement during installation. This requirement will require small renovation at the site and is estimated to be RM4,000. Useful life for this machine is 10 years with the market value only 20% from initial value at the end of life. This machine has special package from the supplier with free maintenance cost for three years, and annual maintenance cost start at year 4 with RM2,000 until year 10. The purchase and installation of Machine Preve is RM21,000. The annual maintenance cost for this machine is RM1,500 per year and to make sure the system run effectively, the machine part has to be changed four times per year, which cost them RM250 each replacement. The machine would last for five years; at which time it should have no more salvage value. The annual operation cost for both machine shows in Table 2. In addition, the company has another option with renting a machine at RM10,000 per year and amounts increasing by 6% per year which is fully maintained by the rental company. Based on the above information; (a) Suggest with justification THREE (3) alternatives available to the company to improve one of its current production line for 10 years planning with the cash flow diagram illustration. (9 marks) (b) Recommend which machine appears to be the best at MARR is 12% per year. [Note: Show all the steps done for the recommendation] (26 marks) Table 2: Annual Operating Cost Machine Pesona (RM) Machine Preve (RM) Year 1 2,400 0 2 2,400 0 3 2,400 5,000 4 2,400 5,000 5 5 2,400 5,000 6 3,000 7 3,000 8 3,000 9 3,000 10 3,000