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Please help, it's urgent. QUESTION 2 Machine A Machine B R100 000 Initial cost R110 000 5 years 5 years 0 R10 000 Expected economic
Please help, it's urgent.
QUESTION 2 Machine A Machine B R100 000 Initial cost R110 000 5 years 5 years 0 R10 000 Expected economic life Expected disposal/residual value Expected net cash inflows R R 33 000 34 000 End of: Year 1 27 000 33 000 Year 2 32 000 33 000 Year 3 30 000 33 000 Year 4 26 000 33 000 Year 5 18 000 22 000 Depreciation per year The company estimates that its cost of capital is 14%. (5 marks) 2.1 Calculate the payback period for Machine A and B (answers must be expressed in years, months and days) (4 marks) 2.2 Calculate the accounting rate of return (on average investment) for Machine A. (answer rounded off to 2 decimal places)Step by Step Solution
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