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 600 000 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 000 000 R9 600 000 Annual operating cost (excluding depreciation) R800 000 R720 000 Fixed costs R3 600 000 R3 600 000 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