cation and might be unsafe. Click for more details. Enable Editing Golden Myanmar Co Ltd. needs to replace its production machinery to meet its increase in production. The following information relates to three offers for the capital expenditure the machinery. You are required by the managing director to recommended one of the three tenders. on Tenders Cost $310,000 $ 280,000 S Years $ 380,000 5 Years Expected Life Scrap Value Expected Expected Cash Inflow End of Year: 5 Years $30,000 $10,000 $20,000 $ $ 90.000 155,000 100.000 2 110.000 100,000 165,000 3 85,000 80,000 95.000 80.000 80.000 100.000 75,000 60.000 5 The company requires a minimum retun on its cost of capital of 12%. Required: (a) Calculate the payback period for each tender. (b) Calculate the Accounting rate of return using the straight line method for depreciation. (c) Calculate the Net Present Value (NPV) of each tender. (d) Calculate the internal rate of retum for each tender. (e) State which tender should be accepted under each appraisal method, stating some of the advantages and disadvantages ofeach method. W DELL PP