484 2. a) Machines Alpha and Beta have the following cash flows: Cash flows (Shs 000) Co C1 C2 C C4 Cs Alpha -480 440 480 520 560 600 640 Beta -480 440 532 Machine Omega was purchased five years ago for Shs 800,000 and produces an annual cash flow of Shs 320,000. It has no salvage value but is expected to last another five years. The company can either replace Omega with Alpha now or replace it with Beta at the end of five years. The company's cost of capital is 10% per annum. What should the company do? Show appropriate computations. (8 marks)