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(20 MARKS Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED Use the information

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(20 MARKS Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED Use the information provided below to answer the following questions: 5.1 Calculate the Payback Period of Machine A (expressed in years, months and days.) 5.2 Calculate the Accounting Rate of Return on average investment of Machine A (expressed to (3 marks) two decimal places) 5.3 Calculate the Net Present Value (NPV) of both machines. 5.4 Based on the Net Present Value, which machine should Aspen Limited purchase? Why? (4 marks) (6 marks) 5.5 Calculate the Internal Rate of Return (IRR) of Machine B (expressed to two decimal places) (1 mark) Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. INFORMATION (6 marks) The following details apply. Ignore taxes

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