Question 2 Minton Limited intends purchasing a new machine and has the option of purchasing one of the following two machines Machine A Machine B R800 000 4 years 100 000 R880 000 4 years 180 000 Purchase price Expected economic lifetime Scrap value Minimum required rate of return 12% Expected net cash inflows(end) R Year 1 Year 2 Year 3 Year 4 12% 230 000 270 000 320 000 340 000 300 000 300 000 300 000 300 000 2.1 Calculate the Payback Period for Machine A. (Answers must be expressed in years, months and days.) 2.2 Calculate the Accounting Rate of Return (on average investment) for Machine B (ignore tax) 2.3 Calculate the Net Present Value (NPV) of both machines 2.4 Based on the Net Present Value, which machine should Minton Limited purchase? Explain why