ALL the questions that follow. [100 MARKS] QUESTION 1 (25 Marks) 1.1 Barney Limited has the choice of purchasing one of two machines viz. Machine A and Machine B. Both machines have a five-year life with no residual value. The annual volume of production for both machines is estimated at 600000 units, which can be sold at R12 per unit. Depreciation is calculated on the machine using the straight-line method. MACHINE A MACHINE B Cost R9 000000 R9 600000 Annual operating cost (excluding depreciation) R800000 R720000 Fixed costs R3 600000 R3 600000 The cost of capital may be assumed at 14%. Required: 1.1.1 Use the net present value method to determine and justify which machine should be selected by