a) Using the projects range of income flows and initial investments mentioned in Question (b) above, and using the Present Value Annuity Table to find the estimated Internal Rate of Return (IRR) (as a basis to find the actual IRR for the chosen project). Use a financial table. (20 marks)

b) The H&M Company is considering purchasing a new machine that would increase the speed of production. The net cost of this machine is RM100,000. The scrap value of investment is RM0. The cash flow for the 5 years is RM25,000, RM30,000, RM25,000, RM20,000 and RM5,000. Based on information given, compute the accounting rate of return (ARR) for H&M company. (5 marks)