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51 Calculate the Payback Penod of Machine A (expressed in years, months and days ) 52 Calculate the Accounting Rate of Retum on average investment
51 Calculate the Payback Penod of Machine A (expressed in years, months and days ) 52 Calculate the Accounting Rate of Retum on average investment of Machine A (expressed to (3 marks) (wo decimal places) 53 Calculate the Net Present Value (NPV) of both machines ( 4 marks) 5.4 Based on the Net Present Value, which machine should Aspen Limited purchase? Why? (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) Aspen Limited intends purchasing a new machine and has the option of purchasing Machine A or Machine B The following details apply. Ignore taxes. END OF PAPER
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