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QUESTION Dolby Enterprises has the option to invest in machinery in Projects M and N but finence is only wwasitable to invest in one of them Project M Project N IR) nitial cost Net profit 450 000 450 000 rear 1 Year 2 Year 3 35 000 75 000 102 000 179 000 69 000 69 000 69 000 1. Assume that all cash flows take place at the end of the year escept the orsel evestment in the project Takes plsce st the beginning of the projet 2. Project 3. Project N machinery is expected to be disposed of at the end of year 5 with a nil scrap value 4. Depreciation is calculated on a straight-line basis l 5. The discount rate to be used by the company 12 M machinery is expected to be disposed of at the end of year 5 with s scrap value of RED 00 Use the information provided above by Dolby Entsrorizes to answer the foilowing questions 5.1.1 Calculate the Payback Period of Project N. (Answer must be expressed in years and months 5.1.2 Calculate the Accounting Rate of Return (on average investment) of Project M Answer must be expressed to two decimal places) 14) 5.1.3 Calculate the Net Present Value of each project. (Round off amounts to the nearest Rand) 5.14 Using your answers from question 5.1.3, which project should be chosen? Why? 5.2 A machine with a purchase price of R418 000 is estimated to eliminate manual operations and save the company R130 000 cash per year. The machine will last 5 years and have no residual value at the end of its useful life Required: Calculate the Internal Rate of Return janswer expressed to two decimal places) Assignment format Your assignment should include a Table of Contents page and a biblioeranh