1. Khalifa Public limited company wants to purchase a machine. The machine can replace six workers whose average annual wages and benefits total $300,000 per year. The cost of machine is $500,000 and it is estimated that the annual cost to operate the machine will be $134,000. The expected useful life of the machine is 4 years and expected salvage value is $60,000 a) Find the annual average Incremental Income 3 marks b) Use average rate of return method (accounting rate of return method) to evaluate this investment proposal. 3 marks c) Should the management purchase the machine? Suggest your opinion regarding the decision 2 marks