$\backslash ($ C $/$ B D G $\backslash$quad $02\backslash )$

Management of ABC Ltd$.$ has asked you to evaluate the following two machines:

Both machines have an economic useful life of $5$ years. Ignore taxation. The cost of capital is $\backslash (18\backslash \%\backslash ).$ Depreciation is provided on the straightline method. The machines will have no scrap value at the end of their useful lives.

REQUIRED

Reqommend which machine should be acquired based on each of the f$$llowing methods:

$1.$ Payback period.

$2.$ Present value.

$3.$ Accounting rate of return.