QUESTION 3: Capital budgeting (25 MARKS] 3.1 An initial investment on machinery of R5 000 is expected to generate cash inflows of R3 000, R4 000, R5 000 and R6 000 at the end of the first second, third and fourth year respectively. Calculate and interpret the NPV of the investment if the discount rate is 15% 3.2 (3) Determine the payback period of a project with a cost of R100 000 and a required rate of return of 14%. The project will have estimated future cash flows of R20 000, R30 000, R100 000 and R120 000 at the end of the first second, third and fourth year respectively. Show all your calculations, including the cumulative cash flow