Q3. A proposal has come before the board of directors of a company for the purchase of a machine to manufacture a new product. Anticipated results for the expected 5 year life of the machine are given by the company's accountant as follows: Year 1 Year 2 Year 3 Year 4 Year 5 GH GH GH GH GH Sale of product 200,000 220.000 230,000 160,000 120,000 Direct cost 100,000 120,000 130,000 100,000 80,000 Depreciation 60,000 60,000 60,000 60,000 60,000 Total costs 160,000 180,000 190,000 160,000 140,000 Profit/loss 40,000 40,000 40,000 Nil (20,000) The company's cost of capital is 12% per annum. Would you advise the company to invest in this machine? (Show workings). 10marks