QUESTION 3 (20 Marks) Shalom Printers is considering replacing an existing old set of copying machines with one of the two newer, more technologically advanced copying machines, a Xerotech or a Printotech. The two new copying machines cost R800 000 and R950 000 respectively. The new copying machines will cost R50 000 and R60 000 respectively to install. The Xerotech copier can be sold for R70 000 and the Printotech copier for R90 000 at the end five years. The projected cash flows with each alternative are provided in the following table: The cost of capital is 12% per annum. Year 1 N Xerotech 220 000 320 000 330 000 340 000 540 000 Printotech 300 000 380 000 480 000 370 000 360 000 3 4 5 Required: 3.1 Calculate the discounted payback period (DPB) for the TWO (2) copiers (6 marks) 3.2 Calculate the net present value (NPV) for the TWO (2) copiers (8 marks) 3.2 Calculate the profitability index (Pl) for the TWO (2) copiers. (4 marks) 3.4 After the calculations above ascertain which copier will be suitable (2 marks)