[20 Marks) Batho & Mondo Enterprises intends buying a new machine and has the option of buying one of the following two machines. Machine A Machine B Purchase price P220,000 250,000 Expected economic life 4 years 5 years Scrap vale P20,000 Expected net cash inflow P50,000 P90,000 End of year 1 P90,000 P90,000 P150,000 P90,000 P110,000 P90,000 P90.000 Minimum required rate of return is 14%. Depreciation is on fixed installment method. (a) (b) (c) (d) Calculate payback period for both machines (answer must be expressed in years and months. (5 Marks) Calculate the Accounting Rate of Return (ARR) for machine A (5 Marks) For both machines calculate NPV and advice on the best alternative (7 Marks) Calculate Internal Rate of Return (IRR) for Machine B