QUESTION 1 An engineering farm is planning for its expansion programme. It has two alternatives for the expansion programme and the corresponding cash flows are summarized in Table 1. The minimum attractive rate of return for the company is 15%. Evaluate the two alternatives based on the Rate of Return (ROR) methods of comparison [22 Marks) ib) Recommend the best alternative to the company for its expansion programme. [3 Marks) Table 1 Alternative First cost (RM) 550,000 830,000 Annual return (RM) 125,000 165,000 Salvage Value (RM) 45,000 65,000 Life (Years) 8 10 A1 A2