Part C - Lily Ltd. Lily Ltd has two investment proposals namely, Project Wow and Project Top, which are mutually exclusive projects. Both projects will require investment in new machines. Expected life span for both machines are 5 years each. Both machines will have zero scrap value. Cost of capital of the Lily Ltd stands at 10%. The projected cash flows are as follows. Year Project Wow Cash Flow ($) Project Top Cash Flow ($) 0 -30,000 -15,000 1 20,000 10,000 2 9,000 9,000 7,000 7,000 4 5,000 6,000 5 3,000 5,000 Required: a. Calculate the Payback Period, the Accounting Rate of Return (use the average investment technique), and Net Present Value of the machine, and provide recommendations as to whether the machine should be bought. (12 marks) b. Produce a report that explains and analyses the key merits and limitations of the differing investment appraisal techniques (Provide a minimum of three (3) advantages and three (3) disadvantages for each techniques). (18 marks) C. Produce a report that identifies and explains the key benefits and limitations of using budgets as a tool for strategic planning. (20 marks) (Total 50 marks) WIN 3