Question 4 [32] Pride Ltd needs to replace one of its meal machines (the Hyena) as a result of a drastic decline in production numbers in recent years. The CEO, Mr Simba, thinks that the machine has gone past its useful life and, therefore, he expects maintenance costs to increase yearly. Ms Nala, the production manager, identified two possible replacement options for management to consider. Management communicated to Nala that they are not planning on expanding the production unit as yet and, as a result, only one new meal machine is needed. Nala, together with the financial manager (Zazu), prepared the table of relevant cash flows for each of the alternatives below. Zazu calculated the company's cost of capital to be 13%. Meal Machine A will require an initial investment of R610 000 and Meal Machine B will require R940000. Required: Apply the net present value (NPV) capital budgeting technique to decide and recommend which one of the two meal machines Pride Ltd should consider as the replacement and explain to management why they should choose this option