Initial cost Expected economic life Machine A R100 000 5 years Machine B R110 000 5 years 0 Expected disposal/residual value R10 000 Expected net cash inflows R R End of: Year 1 34 000 33 000 Year 2 27 000 33 000 Year 3 32 000 33 000 Year 4 30 000 33 000 Year 5 26 000 33 000 18 000 22.000 Depreciation per year The company estimates that its cost of capital is 14%. 2.1 Calculate the payback period for Machine A and B (answers must be expressed in years, months and days). (5 marks) 2.2 Calculate the accounting rate of return (on average investment) for Machine A. (answer rounded off to 2 decimal places). (4 marks)