M Hotels is a group of hotel chains operate in Singapore and has the chance to buy new automated Al machines to automate some of its F&B services which are currently heavily dependent on labour. There is a choice between the Alpha Machine and the Beta Machine. Both will give substantial cost savings to the management. All other factors remain constant and the M Hotels has access to large amounts of capital. The required return on projects is 8%. Project name Alpha Machine Beta Machine $'000 $'000 Initial investment 120 250 Annual cash inflows Year 1 48 90 Year 2 48 90 Year 3 48 90 Year 4 48 90 Required: Calculate the Payback and ARR for both projects and advise the management of M Hotels. Note: Show your workings and present your answers clearly