QUESTION 2 (25 MARKS) (a) Delima Sdn. Bhd., is considering to purchase a RM500,000 machine to manufacture security parts for home alarm system. Delima expects to sell all it can manufacture in the next 10 years. The machine is expected to have a 10-year useful life with no salvage value. Delima uses straight-line depreciation method and a 13% discount rate in evaluating capital investment. The parts are expected to generate annual cash flows of RM100,000 each year for 10 years. Required: (1) Compute the payback period for the project. (2 marks) (ii) Determine the accounting rate of return for the project, based on the initial capital investment. (2 marks) (iii) Using interpolation method, calculate the internal rate of return for the project. (4 marks) (iv) Compute the net present value of the project. (4 marks) (v) Discuss your result based on the computations above? (4 marks) (b) "Accounting profit is suffering from the deficiency of GAAP." Using three (3) points to discuss this statement. (4.5 marks) (c) "Advanced technology investment is difficult to be measured based on capital budgeting." Discuss the three (3) non-financial benefits of this investment. (4.5 marks)