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4REQURED Sudy the information provided below and answer the folloving questions: 4.1.1 Use the Nat Present Value techrique to deternine the machine that the company
4REQURED Sudy the information provided below and answer the folloving questions: 4.1.1 Use the Nat Present Value techrique to deternine the machine that the company should purchase. (10 marks) 4.1.2 Cakulate the Accounting Rate of Retum (on initial invesment) of MadhineX. (4 marks) INFOFMATION Emerald Limited has the dhoice of purchasing one of two machines viz. Machine X and Machine Y but funding is avalable to invest in only one of them (f at al). Each madhine costs R10 000000 and a useful life of five years is anticipated. The residual value of each machine is estimated to be R1 000000 . The annual volume of production for each machine is estimated to be 150000 units, which can be sold for cash at R48 per unit. Depreciation is calculated on the madhines using the straight-line method over their respective useful lives. Annual cash operaing costs are as follows: The cost of capital is expected to be 15%. 4.2 REQURHD Use the infomition provided below to calaulate the epected production cost for November 2023. (6 INFOFMATION marks) Malven Limited manufactures Product Mac. An esimate of the number of units to be sold during November and December 2023 is aiven below: It is anticipated that: - There will be no work-in-process at the end of any month. - Finished units equal to 40% of the eqpected sales of the following morth wil be in irvertory at the end of each month. The budgted production and production coots for the year ending 31 December 2023 are as follons
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