QUESTION 5 (20 Marks) Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. 5.1 REQUIRED Study the information given below and calculate the Net Present Value. (5 marks) INFORMATION Richmond Limited is considering the purchase of a machine. The machine will cost R1 200 000 plus installation costs of R250 000 and it is expected to have a useful life of five years. The machine is expected to generate cash flows of R560 000 per year and is also expected to have a salvage value of R50 000. Annual cash outflows are expected to amount to R200 000. The company desires a minimum required rate of return of 12%