Consider the following capital budgeting problem. The following two machines, A & B, are mutually exclusive. The cash fows associated with each machine are tabulated as follows all numbers are in thousand dollars, the relevant discount rate is 10% for both machines Year Machine A Machine B 0 ($80,000) ($100,000) 1 50,000 60,000 2 50,000 60,000 50,000 60,000 4 50,000 60,000 a) Calculate the net present value for each machine investment, assuming a 10% rate of return. b) Calculate the accounting rate of return for each machine investment. c) Calculate the internal rate of return for each machine investment d) Calculate the payback period for each machine investment e) which one would you recommend the company to purchase? 3