13. Samson Ltd is considering replecing equipment. The cost on 1.1 .2023 will be f3m. The expected economic life of the equipment will be 4 years. The company depreciates its equipment using the straightline methods. The company expects to sell this equipment for 400,000, after the end of its useful economic life. There are expected cost savings arising from this investment of 1,200,000 in each of years 1 and 2 and 800,000 in each of years 3 and 4. What is the payback of this investment? Select one answer: 2 years 3 years 2 years and 9 months 3 years and 2 months 14. Lachman Ltd is considering replacing a machine. The cost on 1.1.2023 will be e2.3m. The expected economic life of the equipment will be 4 years. The company depreciates its equipment using the straightline method. The company expects to sell this equipment for 200,000 after the end of its useful economic life. There are expected cost savings arising from this investment of 900,000 in each of years 1 and 2 and 600,000 in each of years 3 and 4 . To the nearest 100. NPV at a discount rate of 8% is +369,100 and at a discount rate of 20%, it is - 192,700. The Internal Rate of Return of this project is: Select one answer: 11.5% 12.1% 15.9% 14.0% 15. Waiters Ltd is considering replacing a packaging machine. The cost on 1.1.2023 will be 4.5m. The expected economic life of the machine will be 4 years. The company depreciates its equipment using the straight-ine methods. The company expects to sell this equipment for \&400,000, after the end of its useful economic life. There are expected cost savings arising from this investment of 1,650,000 in each of years 1 and 2 and 1,800,000 in each of years 3 and 4 . You can assume that all cash flows occur on the final day of the year to which they relate, unless otherwise stated. What is the accounting rate of retum using the average investment? Select one answer: 15.0% 33.3% 12.5% 28.6%