5 years Kanye & Jwaneng Enterprises intends buying a new machine and the following details relate to the machine. Purchase price P300,000 Expected economic life Scrap vale 0 Minimum required rate of return 12% Expected net cash inflow End of year 1 P40,000 2 P80.000 P150.000 P90.000 4 5 P60.000 Depreciation is on fixed installment method. (a). Calculate payback period for both machines (answer must be expressed in years and months. (b). Outline two advantages and three disadvantages of payback method (c). Calculate the Accounting Rate of Return (ARR) for machine (d). Calculate NPV for the machine and advice the company. (4 Marks) (5 Marks) (5 Marks) (6 Marks)