$1\mathrm{.}1$ Calculate the Payback Period of both machines. $($Answers must be expresses in years, months and days.$)$

$1\mathrm{.}2$ Calculate the Accounting Rate of Retum $($on average investment$)$ of Machine A$.$

$1\mathrm{.}3$ Name one advantage of using net present value as a capital investment appraisal technique.

$1\mathrm{.}4$ Calculate the Net Present Value of each machine. $($Round off amounts to the nearest Rand.$)$

$1\mathrm{.}5$ Calculate the Internal Rate of Return of Machine B$.$

INFORMATION

Vierra Limited intends purchasing a new machine and has a choice between the following two

machines:

The company estimates that its cost of capital is $12\%.$