Question 1 A motor car manufacturing firm has decided to invest in a new equipment to improve its production process. The following are the cost of both equipment and the expected cash flow from each. The required rate of return is 10%. Equipment A $300,000 Equipment B $400,000 Cost: Cash flows Yr 1 40,000 Yr 2 Yr 3 60,000 70,000 75,000 70,000 50,000 55,000 80,000 85,000 80,000 70,000 Yr 4 Yr 5 Yr 6 90,000 Required You are the Management Accountant, advise the firm which equipment should be purchased and why (15 marks) b. Write short notes on: i. ARR ii. Payback method iii. Profitability Index (6 marks) c. What is a Management Control System (4 marks)