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not new With zero value. The discount rate for Show on paper are 2 You are required to: Cash Flow Machine A (170,000) ao_ooo 40.000 43.000 49.000 50.000 (200,000) 40000 48.000 52.000 60.000 65.000 l) Calculate the following for both machines: a. Accounting Rate of Return (6 marks) b. Payback period (4 marks) luating the calculations. Your answer should c. Net present value (10 marks) ds will be considered incomplete (5 marks) II) Provide your recommendations to XYZ by critically eva I financing options. Your answer should be at least 75 words. Answers with less than 75 wor II be considered incomplete (5 marks) Ill) Based on the above evaluation, briefly discuss the interna be at least 100 words. Answers with less than 100 words wi ment programme for the forthcoming 12 months. They now have to consider whether to replace a machine, which the company has owned for 5 years, with a new and more efficient machine. A full examination of the available information reveals the following facts and estimates: Original cost: Book value 6,000,000 Cost of new machine 4,000,000 Alternative 1 10 years Estimated useful life Net profit per annum Alternative 2 5 years In calculating the profits above, all operating costs have been deducted, including, depreciation calculated on a straight-line basis assuming a nil residual value at the end of the estimated useful life. You are required to: l) Calculate the NPV of each of the alternatives above. Assume a cost capital of 11% (15 marks) II) Write a short report to the management giving your recommendations between the two alternatives. (5 marks)