A company is considering whether to purchase a new machine. Machines A and B are available for purchase. Machine A will cost R100,000 and Machine B will cost R90,000. Cash flows / Earnings after taxation are as follows: Depreciation is provided at 20% on cost and has not been factored in the above. Ignore any wear and tear cash flow implications. Year Machine A Machine B R R 1 24,000 20,000 2 32,000 24,000 3 40,000 32,000 4 24,000 48,000 5 16,000 32,000 4 Required: Evaluate the two alternatives using the following: (a) payback method (7) (b) accounting rate of return (7)