Alpha Sands Limited intends acquiring machinery for its plant in Richards Bay. The machinery is expected to cost R$1200000$ and will have useful life of five years. Net cash inflows of R$400000$ per annum will be received over the five years.

The company has a cost of capital of $10\%$

The machinery will have a NIL scrap value.

The net present value of the machinery will amount to $?$

A$.$ R$800000$

B$.$ R$316000$

C$.$ R$322000$

D$.$ R$2000000$