(a) Your company is considering a new machine purchase which costs 7.5M. It is expected that this investment would provide savings of 1.5M per annum. The discount rate is 12% per annum but is expected to increase to 15% from year 3. What is your recommendation regarding this investment? Provide calculations to justify your recommendation. [10 marks] (b) For the project described in Question 2(a), identify risks that must be considered when conducting this investment appraisal. (5 marks]