Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED 5.1 Calculate the Payback Period (answer expressed in years, months and days). (3 marks) 5.2 Calculate the Accounting Rate on Return on average investment (answer expressed to two decimal places). (5 marks) 5.3 Compute the Net Present Value of the machine (amounts rounded off to the nearest Rand). (5 marks) 5.4 Calculate the Internal Rate of Return, if the net cash inflows are R360 000 per year for 4 years (answer expressed to two decimal places). (6 marks) 5.5 Refer to your answer in question 5.4. Should Aries Limited consider purchasing the machine? Why? (1 mark) INFORMATION Aries Limited has identified a new machine that it is considering for purchase. The machine would cost R1 000 000, and its cash operating expenses are budgeted at R250 000 per year. On the benefit side, it is estimated that the new machine would generate cash revenues of R570 000 per year. The machine would last four years and depreciation is expected to amount to R250 000 per year. At the end of four years, the machine would be donated to a skills development centre. The cost of capital is 15%.