Question #4 Beta Corporation is considering investing in one of two machines - Machine A or Machine B. The initial cost and net cash inflows from each project are shown below. The opportunity cost for both projects is 14% per cent. Cash Flow Machine A Machine B S $ Initial Cost 6 500 000 5 000 000 Net Cash Inflows Year 1 1 000 000 1 400 000 Year 2 1 300 000 1 600 000 Year 3 1 300 000 1 600 000 Year 4 1 200 000 1 600 000 Year 5 1 200 000 1 200 000 Year 6 1,400,000 1,000,000 Discount factor table Year 12% 14% 1 0.8929 0.8772 2 0.7972 0.7695 0.7118 0.6750 4 0.6355 0.5921 5 0.5674 0.5194 6 0.5066 0.4556 Required: (a) Calculate the payback period for each project and identify the project in which the company should invest, giving ONE reason for your choice. (b) Calculate the Accounting Rate of Return on initial capital for each project. (c) Calculate the Accounting Rate of Return on average capital for each project. (d) Calculate the net present value (NPV) for each project and identify the project in which the company should invest, giving ONE reason for your choice