Question $4$

Use the information related to the acquisition of a new machine to calculate the following. $($Ignore taxes.$)$ Use discount factors from the four decimals present value tables only in the relevant calculations.

$4\mathrm{.}1$ Payback Period $($expressed in years and months$).$

$4\mathrm{.}2$ Accounting Rate of Return on initial investment $($expressed to two decimal place$).$

$4\mathrm{.}3$ Net present value. Your answer must include the present value calculations and the calculation of the NPV$.$

$4\mathrm{.}4$ Internal Rate of Return $($expressed to two decimal places$).$ Your answer must reflect two NPV calculations $($using consecutive rates$/$percentages$)$ and interpolation.

$4\mathrm{.}5$ Weighted average cost of capital $($expressed to two decimal places$)$ if the initial investment is funded by ordinary shares and debt in the ratio $3$:$2$ respectively and the cost of ordinary shares and cost of debt are $18\%$ and $14\%$ respectively. Your answer must include the values of the ordinary shares and debt.