(b) A firm must decide between two system designs, SI and S2, whose estimated cash flows are shown in the following table. The effective income tax rate is 40% and MACRS (GDS) depreciation is used. Both designs have a GDS recovery period of five years. If the after-tax desired return on investment is 10% per year, which design should be chosen? Table 2 Capital investment Useful life (years) MV at end of useful life Annual revenues less expenses Design S1 S2 RM100,000 RM200,000 7 6 RM30,000 RM60,000 RM20,000 RM40,000 [20 Marks) (CO2, PO2, C5]