Question 2 A limited company is considering investing in a machine in order to increase its profitability. There are two available machines in the market. These are Machine P and Machine Q The company uses straight-line depreciation method to calculate depreciation expenses for the year. The estimated annual profit increases (in 000) and after the calculation of depreciation expenses the profit amounts are as follows: Year P Q 0 1 300 200 23456 400 600 100 100 300 500 200 150 500 700 Machine P has an initial cost of 1,200,000. The residual value of Machine P is expected to be 150,000. However, Machine Q's initial cost is 1,300,000 and the