Question 4,(8 Marks) Capital Budgeting The GDK Corporation has budgeted 1,000,000 for a new capita expenditure in production machinery. The oompany has estimated the following net cash inflows from the use of the new machinery Machine Machine Machine Machine Machine Cost Y1 Y2 Y3 Y4 Y5 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 100,000 300,000 200,000 100,000 100,000 200,000 100,000 600,000 400,000 100,000 0 5,000 100,000 0 700,000 00,000 400,000 200,000 100,000 200,000 400,000 100,000 600,000 400,000 400,000 1. Calculate the Payback period and disclose which machine is best investment (2.5 Marks) 2. Calculate the Net Present value and disclose which machine(s) are selected. The Present Value Interest Factor is 10%. (Y1: 0.9000, Y2 0.8264, Y3 07513, Y4-0630, Y5-06209) (3 Marks) 3. Determine the direction of the Intermal Rate of Return. (1 Mark) Calculate the Profitability index and seledt the best investment. (1.5 Marks)