QUESTION 5 (20 MARKS) 5.1 REQUIRED Use the information provided below to calculate the following. Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. 5.1.1 Payback Period (expressed in years, months and days) (3 marks) 5.1.2 Accounting Rate of Return, on average investment (expressed to two decimal places) (4 marks) 5.1.3 Internal Rate of Return (expressed to two decimal places) (6 marks) INFORMATION Redd Ltd intends purchasing a machine. The following details relate to this machine: Purchase price Expected useful life R1 200 000 4 years 12% RO Minimum required rate of return Scrap value Depreciation Net profit per year Straight-line method 151 year R40 000 2nd year R100 000 3rd year R130 000 40 year R150 000