INFORMATION Malibu Limited intends purchasing a new machine and has the option of purchasing one of the following two machines: Machine A Machine B Cost R350 000 R350 000 Scrap value 0 0 Estimated useful life 4 years 4 years Cost of capital 12% 12% Net cash flows per year: R R End of: Year 1 100 000 130 000 Year 2 115 000 130 000 Year 3 145 000 130 000 Year 4 160 000 130 000 Average Annual profit: R42 500 R42 500 Use the information provided below to answer the following questions: 3.1 Calculate the Payback period of both machines. (Answers must be expressed in years, months and days.) (6 marks)