QUESTION 1

Solution same step but different value

Solution same step same value but in dollar.
 QUESTION 2

Solution same step but RM XXXX given and cash flow diagram 2a(ii) not provided.
 QUESTION 3

Solution same step same value but y% has been given.

 QUESTION 4

Solution same step BUT different value.

 QUESTION 5

Solution same step same value but in dollar. Question 5b not same.
The higher the MARR, the higher the price that a company should be willing to pay for equipment
that reduces annual operating expenses." Do you agree with this statement? Explain why.

Expert's answer

A hurdle rate, which is also known as minimum acceptable rate of return (MARR), is the minimum
required rate of return or target rate that investors are expecting to receive on an investment.

No, I would not agree with the statement because the inventories are considered an asset since they
are significant resources with value owned by business entities.

Inventories are not a liability since it is an accountability to pay for anything.