Beta Corporation is considering investing in one of two machines $-$ Machine A or Machine

B$.$ The initial cost and net cash inflows from each project are shown below. The opportunity

cost for both projects is $12\%$ per cent.

Discount factor table

Required:

$($a$)$ Calculate the payback period for each project and identify the project in which the

company should invest, giving ONE reason for your choice.

$($b$)$ Calculate the Accounting Rate of Return on initial capital for each project.

$($c$)$ Calculate the Accounting Rate of Return on average capital for each project.

$($d$)$ Calculate the net present value $($NPV$)$ for each project and identify the project in

which the company should invest, giving ONE reason for your choice.