QUESTION 1 [40 MARKS] (a) Asus Company is considering two new machines that should produce considerable cost savings in its assembly operations. The cost of each machine is $14,000. Asus Company's required rate of return is 12% and the company prefers that a project return its initial outlay within the first half of the project's life. The annual after-tax cash savings for each machine are provided in the following table: Year 1 2 234 4 Total COMPULSORY REQUIRED Machine A Machine B $5,000 $5,000 $5,000 $5,000 $20,000 $8,000 $6,000 $4,000 $2,000 $20,000 (i) Compute the payback period for each machine (ii) Compute the net present value for each machine. (iii) Which machine should be purchased? (iv) Outline 2 advantages and 2 disadvantages of payback period. (8 marks) (6 marks) (2 marks) (4 marks)