Course: Advanced Financial Management (FNAN 401) Academic year: 2022/2023 Serwester: Fall 2022 Name ID. No. 1. Suppose that L'Oreal is planning to expand its manufacturing plant in Dubai. The CEO is planking to buy a machine that helps the company increase its production. The CEO presented to two machines to be considered for approval by the board of directors. Although both of the two machines could make the company profitable, the company will chose only one machinc. The initial investment required to get the machines ready for use and the expected cash flows over six years period are provided in the following table. The company uses a discount rate of 10% on all of its capital budgeting decisions. The cut-off payback period is 3 years. Required: A. Compute the payback period of the machines. B. Compute the NPV of the machines. C. Determine the Profitability index of the machines. D. Provide a concluding remark based on the payback period, NPV and profitability index results