Question: QUESTION 5 (20 Marks) REQUIRED Use the information provided below to calculate the following. Where applicable, use the present value tables that appear after QUESTION

QUESTION 5 (20 Marks) REQUIRED Use the information provided below to

QUESTION 5 (20 Marks) REQUIRED Use the information provided below to calculate the following. Where applicable, use the present value tables that appear after QUESTION 5. 5.1 Payback period of both machines (expressed in years, months and days.) (6 marks) 5.2 Acoounting Rate of Raturn (on average investmenf) of Machine A (expressed to two decimal places). (3 marks) 5.3 Nat Present Value of both machines. (6 marks) 5.4 Internal Rate of Return of Machine B (expressed to two decimal places) using interpolation if the net cash flows are R290 000 par year for four years. (5 marks) INFORMATION Trump Limited intends purchasing a new machine and has the option of purchasing Machine A or Machine B. The following details apply: END OF PAPER

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