Portofino Traders has investigated the possibility of investing in a new machine. The following data has been extracted from the reports relating to the project: Cost of machine R 200 000 Expected economic life 4 years Depreciation method Straight-line Cost of capital 13% Year Profit R Cash flow R 1 50 000 100 000 2 30 000 80 000 3 40 000 90 000 4 20 000 70 000 REQUIRED: Calculate the following to analyse the project Portofino Traders which to invest 2.1 Accounting rate of return. (4 marks) 2.2 Payback period (years, months and days). (4 marks) 2.3 If the cut off period is 2 years, will the current payback period be accepted? Why? (2 marks) 2.4 Net present value (Round off the amounts to the nearest Rand). (8 marks) 2.5 On the basis of the calculation of the net present value, will the project be accepted? Why? (2 marks)