QUESTION 4 41 20 Marks) Retained earnings 000 000 17090000 REQUIRED Non-current liabilities Long 10 000000 3400 000 10000000 3400000 Study the information provided below and answer the folowing questions Current abilities 3200000 2000000 4.1.1 Use the Net Present Value technique to determine the machine that the company should purchase Accounts payable 3200000 2000000 4.1.2 Calculate the Accounting Rate of Return on inisial investment of Machine X (10 mark (4 marks) 25 200 000 23680000 INFORMATION Emerald Limited has the choice of purchasing one of two machines viz. Machine X and Machine Y but funding is available to invest in only one of them (f at at). Each machine costs R10 000 000 and a useful life of five years is anticipated. The residual value of each machine is estimated to be R1 000 000. The annual volume of production for each machine is estimated to be 150 000 units, which can be sold for cash at R45 per unit Depreciation is calculated on the machines using the straight-line method over their respective useful lives. Annual cash operating costs are as follows Variable costs per unit Fixed costs (a) The cost of capital is expected to be 15% 42 Machine X R6.00 Machine Y R4 80 R3 000 000 R3 200 000 REQUIRED Use the information provided below to calculate the expected production cost for November 2023 (5 marks) INFORMATION Malvern Limited manufactures Product Mac. An estimate of the number of units to be sold during November and December 2023 is given below November December It is anticipated that There will be no work-in-process at the end of any month 3000 3800 Finished units equal to 40% of the expected sales of the following month will be in inventory at the end of each month.