0 4 1) A potential 6-year project requires the purchase of a new piece of machinery. You are the project manager and you must choose between two potential machines (Machine A and Machine B), either of which would be suitable. The cost of cach machine is identical at 80,000 and 85.000. Projected cash flows over the 6 years of the project are as follows in Table Qe: Year Cash Flow Machine A Cash-Flow Machine B (80,000) (80,000) 5,000 35,000 8,000 25,000 3 12,000 18,000 20,000 10,000 5 25,000 | 7,000 6 30,000 5,000 Total Yield 100,000 100,000 Table Qe i. Calculate the return of investment for both machines and select which of the two machines will yield a higher profit in 6-years' time. (6 Marks) ii. By simple inspection of the cash flow figures, state which machine will have shorter payback period? (3 Marks) 1. Your colleague disagrees with your answer. Suggest onc valid reason why your colleague didn't agree with you. (3 Marks) 3 tv. Calculate the total NPV for each machine after 6 years assuming a discount (inflation) rate of 8% for each year of the project. Table below provides a list of discount factors for a range of discount inflation rates. (8 Marks)