net present value (use only present value table 1 discount factors from the module guide to calculate the present values of the net cash flows)

foume). Sentre Limited has identified a new machine that it is considering for purchase during 2024. The machine would cost R1 000000 , excluding installation costs of R200 000. The machine is expected to have a useful ife of five years and depreciation per year is estimated at R220 000. It is expected that the new machine would generate cash receipts of R540 000 per year and its annual cash outflows would total R220 000. At the end of year 3, the machine would require a major overhaul costing R200 000 cash (not included in the figures above). A scrap value of R100 000 (not included in the figures above) is inticipated. The cost of capital is 15%