Friends Ltd requires a new machine to use in the manufacture of a new product. Two machines are available: Machine A and machine B. The useful life is 5 years for each machine. Machine A and Machine B both have a scrap value of Rs 5,000 and Rs 7,000 respectively. There were sales proceeds at the end of the fifth year to an amount equivalent to the scrap value. Assume a corporate tax rate of 15% and Friends Ltd used a discount rate of 8% to appraise its investments. Further information Machine A Machine B Rs Rs Cost of machine 120,000 180,000 Cash Inflows: Year 1 40,000 50,000 2 40,000 60,000 3 40,000 70,000 4 40,000 80,000 5 40,000 90,000 Cash Outflows : Year 1 16,000 20,000 2 20,000 30,000 3 22,000 35,000 4 24,000 40,000 5 25,000 45,000 Required: Use (a) Net Present Value (NPV) Method, [6 marks] (b) Internal Rate of Return (IRR) Method, [6 marks] (c) Pay-Back Method, and [6 marks] (d) Discounted Pay-Back Method, [6 marks] to advise Friends Ltd on which machine to purchase. [1 markv