Good day,

please assist with the below. Thanks

QUESTION 2 Machine A Machine B R100 000 R110000 5 years 0 Initial cost Expected economicile Expected disposa/residual value Expected net cashindows End of: Year 1 Year 2 Year Year 4 Year 5 Depreciation per year 5 years R10 000 R 34 000 27 000 32 000 30 000 26 000 R 33 000 33000 33 000 33000 33 000 22 000 18 000 2.1 (5 marks) The company estimates that its cost of capital is 14% Calculate the payback period for Machine A and B (answers must be expressed in years, months and days). Calculate the accounting rate of return (on average investment) for Machine A. (answer rounded off to 2 decimal places) 2.2 (4 marks) 2.3 (6 marks) Calculate the net present value of each machine (round off amounts to the nearest Rand). Calculate the internal rate of return for Machine B. 2.4