QUESTION $2(20$ Marks$)$ Mondi Limited is considering two options for acquiring a new machine: Option $1$: Purchase of a locally manufactured machine at a cost of R$900000.$ The machine will have an expected useful life of four years with a NIL scrap value. Cash inflows of R$280,000$ are expected in year $1,$ increasing by $10\%$ each year for the next $3$ years. Option $2$: Purchase of an imported machine at a cost of R$1,300,000,$ with a useful life of $5$ years and expected cash inflows of R$350000$ annually. The machine will have a scrap value of R$90000$ after $5$ years. Additional information $$ The minimum required rate of return is $8\%.$ Assets are depreciated on a straight$-$line basis. $$ The tax rate is $28\%.$ REQUIRED $2\mathrm{.}1$ Calculate the payback period for both options. $(4$ Marks$)($answers in years and months$)2\mathrm{.}2$ Calculate the Net Present Value $($NPV$)$ for both options. $(6$ Marks$)($use discount factors to $4$ decimal places as found in your module guide$)2\mathrm{.}3$ Calculate the accounting rate of return on average investment for Option $1.(4$ Marks$)($answer to $2$ decimal places$)2\mathrm{.}4$ Calculate the profitability index for both options. $(4$ Marks$)($answer to $2$ decimal places$)2\mathrm{.}5$ Based on the NPV calculated, advise which option Mondi Limited should choose if the two options are independent.