QUESTION 1 (45 marks) Cape Town Printers is considering replacing one of their old heavy duty printing machines to increase sales and decrease input costs. The new machine will cost the company R18 750 000. All other costs to get the machine ready for use will amount to R1 875 000. The new machine's estimated useful life is 10 years, and depreciation will be written off using the straight-line method. The machine's estimated selling price at the end of its useful life amounts to R4 687 500 The current machine has a useful life of 10 years, of which 5 years remain. At the end of the machine's useful life, the market value will be R937 500, while the current machine's total cost price amounts to R10 312 500. Cape Town Printers has a potential buyer for the existing machine, and the buyer is willing to pay R3 750 000. Cape Town Printers estimate sales to increase by R4 678 500 and operational cost to decrease by R1 875 000. The company has a required rate of return of 13%, and the tax rate is 28%. Required: 1.1) Prepare a replacement analysis in an Excel workbook based on the information supplied. Make sure to include the following: Cash flow analysis to illustrate the effect of replacing asset (machine) with a new one. You need to apply your Excel skills and knowledge to create the analysis. Include a calculation of: o the replacement analysis' Net Present Value, o Internal Rate of Return and 17 HPFM440-1-Jan-Jun2022-FA2-GC-V4-27012022 o Payback Period. You need to provide your Excel workbook as an answer, and marks awarded as follow: Normal view (15 marks)