REQUIRED Use the information provided below to answer the following questions: 5.1 Calculate the Payback Period of Machine A (expressed in years, months and days.) 5.2 Calculate the Accounting Rate of Retum on average investment of Machine A (expressed to two decimal places). 5.3 Calculate the Net Present Value (NPV) of both machines. 5.4 Based on the Net Present Value, which machine should Aspen Limited purchase? Why? 5.5 Calculate the Internal Rate of Retum (IRR) of Machine B (expressed to two decimal places). Your answer must include two et present value calculations (using consecutive rates/percentages) and interpolation. Purchase price Expected useful life Scrap value Depreciation per year Minimum required rate of return Expected net cash inflows Year 1 Year 2 INFORMATION Aspen Limited intends purchasing a new machine and has the option of purchasing Machine A or Machine B. The following details apply. Ignore taxes. Year 3 Year 4 Expected net profit Year 1 Year 2 Year 3 Year 4 Machine A R500 000 0 R125 000 7 (3 marks) R15 000 R35 000 R95 000 R75 000 (4 marks) (6 marks) (1 mark) (6 marks) Machine B R500 000 R125 000 R180 000 R180 000 R180 000 R180 000 AU

REQUIRED Use the information provided below to answer the following questions: 5.1 Calculate the Payback Period of Machine A (expressed in years, months and days) (3 marks) 5.2 Calculate the Accounting Rate of Return on average investment of Mlachine A (expressed to two decimal places). (4 marks) 5.3 Calculate the Net Present Value (NPV) of both machines. (6 marks) 5.4 Based on the Net Present Value, which machine should Aspen Limited purchase? Why? (1 max) 5.5 Calculate the Intemal Rate of Retum (IRR) of Machine B (expressed to two decimal places). Your answer must include two het present value calculations (using consecutve rates percentages) and interpolation. (6 mars) INFORMATION Aspen Limited intends purchasing a new machine and has the option of purchasing Machine A or Machine B. The following detais apply. Ignore taves