Charlie Ltd. intends to invest in a new machine. A feasibility study for this investment was carried out three months ago costing 6,000 and this is included in the cost of the machine. The machine costs 46,000 and it has a scrap value of 8,000. In addition, the opportunity costs of purchasing this machine are estimated at 2,000 per year. The company uses a 9% discount rate. 1a) To be relevant to management decision making costs should have three qualities, what are they? (3 marks) 1b) Calculate the Net Relevant Cashflow for Year 1, Year 2 and Year 3 (9 marks) 1c) Using the net relevant cashflow (from your answer to 1b ), calculate: I. The Payback Period II. The Net Present Value (7 marks) 1d) Which of the above methods of Capital Investment Appraisal do you consider best? State your reasons (6 marks)