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Access Manufacturing is a company that manufactures internal processors, micro-chips and adaptors. Their customers include Lenovo, Asus and Acer, to name a few. Access manufacturing is considering to procure a new machine from China, at a cost of R800 000 to replace an existing machine that is not fully functional anymore. This machine will help them manufacture these parts they are selling and improve their manufacturing efficiency. You are requested to analyse the viability of such an investment. You know that the economic life span of the machine is 4 years, the required rate of return on investments is 12%, the required ARR is 25% and that the cash flows are forecasted to be: Year Cash flow R280 000 1 R275 000 N m R235 000 R290 000 Should the new machine be acquired? Motivate your answer clearly. Complete the following table in support of your answer. Round the discount factor to four decimal places. YEAR 0 1 2 2 3 4 Cash flow Discount factor (@ 12%) (12) (14) ( (12) (12) Present value (13) (12) (1/2) (12) (12) Calculate the NPV Using the ARR Method determine if Access Manufacturing must accept or reject the investment. Access Manufacturing has set its ARR as 22%. The financial department of Access Manufacturing calculated the IRR to be 17%. Should Access manufacturing buy or not buy the machine, provide a reason Use the profitability index to help Access Manufacturing decide whether or not to buy the machine, show your workings and provide a reason