Problem - 2 Initial outlay for each of the following projects is R15,000 & standard payback is 3 years. Evaluate the projets and mark them based on payback period Year 1 2 3 4 5 Project A Project B Project CCD 5,000 3,500 2,500 800 5,000 4,000 2,500 6,000 5,000 4,500 2,500 6.000 5,000 6,000 2,500 5,000 5,000 6,000 2,500 5,000 Calculate ARR Investment Expected Life Scrap Value Project A 50,000 5 Years 7000 Project B 50.000 5 Yes 3000 Year 1 2 3 4 5 Project A 6,000 9,000 10,000 12,000 14,000 51,000 Pro 7. 8,000 10,000 12,000 16,000 Total Income 53,000 A company is considering the purchase of new machine, Two alternative models are available. Each year cash flow is given. If the total investment of Model A is Rs. 70,000 and Model B Rs: 60.000, Which alternative company will select on the basis of of me models? Year Model A Modele 1 8000 24000 2 24000 32000 48000 32000 40000 3 4 24000 5 32000 16000