(20 Marks) QUESTION 4 INVESTMENT APPRAISAL NUTCRACKER is considering investing in a modem machine to add to its flit of machinery with an initial cost of R300 000. The cost of capital is 12%, with a 4-year useful life without a residual value for two mutually exclusive Machines. Note that depreciation is a straight-line method for four years. The expected cash flows are outlined below Year Cash flow Machine A Cash flow Machine B 150 000 1 105 000 2 120 000 120 000 3 135 000 135 000 4 150 000 105 000 REQUIRED: Calculate the following for the projects and determine the investment to recommend to management. 4.1 Accounting rate of return. (4 marks) (4 marks) 4.2 Payback period (in years, & months). 4.3 4.4 Net present value (Amounts to the nearest Rand). (10 marks) Make your recommendation with reasons for your choice. (2 marks)