IA. Define capital budgeting and explain its significance B. Zelnic Corporation needs a food processing machine. It is considering two machines Machine A and Machine B. Machine A costs $20,000 and will reduce operating cost b $5,000 per year. Machine B costs only $10,000 but will also reduce costs by $5,000 per year. Calculate the payback period and demonstrate which machine should be purchased according to the payback method. Formula: Investment required/Net annual cash inflow C. Explain the present value concept as a technique in capital budgeting. Using the present value approach, solve the following: Tom has $100 in a bank account that pays a guaranteed 5% interest rate each year. How much would Tom have at the end of Year 3? 2. Analyze any three of the following techniques of analyzing projects and investments: i) present worth method; i) annual amount method iii) future value method, iv) return on investment or internal rate of return method. 3. The process of allocating funds to projects and investments includes the following: A) Analysis B) Selection C) Monitoring D) Evaluating performance Analyze any three of the above. 4. A. Explain the main theoretical underpinnings breakeven analysis and minimum cost analysis. a We discussed in class that growth rates may differ between countries as a result of five public policy t nublic policy initiatives that the countries may pursue. Analyze initiatives that a country can pursue to increase economic growth