Design Layout References mew... 12 A A Aa A Uab x, x' ADA Assessment 3 2019 session 312) (2) Mailings Review View Tell me what you want to do VERY E ALT AaBbceDdE 3 E a AaB CcDdE AaBbc No Spacing Headin (7 marks) 3. Futurist Enterprises is considering buying one of two possible available machines as part of its proposed product expansion. Machine no. 1 would cost $150 000 and is expected to earn annual net cash inflows of $50 000, $52 000, $55 000, $38 900 and $36 500 before it wears out sufficiently to be unreliable and will be sold for an estimated $20 200. Machine No.2 would cost $115 000 and is expected to earn annual net cash inflows of $40 000, $42 000, $45 000, $32 900 and $32 500 before it wears out sufficiently to be unreliable and will be sold for an estimated $10 100 (15 Marks) Required a. If funds can earn 5 per cent, what is the NPV of each Machine? b. Advise management on your recommendation regarding purchase of which machine subsequent to your NPV calculations. e. What advice would you give management if the required payback period was two years? Show calculations for a and c