Please answer the question with full explanation and workings. Avoid using software such as Excel to solve.

Initial cost Rs 90 000 Rs 100 000 Expected disposal/residual value Rs 8 500 Expected net cash inows End of: Year 1 Year 2 Year3 Year4 Year5 The company estimates that its cost of capital is 7%. (a) Calculate the payback period for both machines. (answers must be expressed in years, months and days) (4) (b)Ca1culate the discounted payback period for both machines (answers in years, months and days)(6) (c) Calculate the net present value for both machines. (to the nearest Rupee) (8) (d) Calculate the Profit ability Index for Machine ABC. (3) (e) Calculate the Internal Rate of Return for both machines (Use interpolation to arrive at your final answer.) (6) (f) Write a brief report to the management to determine whether the (3) company should buy any machine