Question: INFORMATION Lampard Limited intends purchasing a new machine and has a choice between the following two machines: The company estimates that its cost of capital

INFORMATION Lampard Limited intends purchasing a new machine and has a

INFORMATION Lampard Limited intends purchasing a new machine and has a choice between the following two machines: The company estimates that its cost of capital is 12%. REQUIRED 3.1 Calculate the Payback Period of both machines. (Answers must be expressed in years, months and days.) 3.2 Calculate the Accounting Rate of Return (on average investment) of Machine A. 3.3 Name one advantage of using net present value as a capital investment appraisal technique. 3.4 Calculate the Net Present Value of each machine. (Round off amounts to the nearest Rand.) 3.5 Calculate the Internal Rate of Return of Machine B

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