Question 5 (33 marks) Border Engineering (Pty) Ltd must replace one of its machines because the machine is more than 10 years old, and its maintenance costs are becoming unaffordable. The company is considering two different machines from two different suppliers. Machine P will require an initial investment of R1 000 000 and Machine Q an initial investment of R1 200 000. Border Engineering's cost of capital is 13% and the estimated net cash flows for each machine for a five-year time horizon are included in the table below. Projected net cash flows: 2019-2023: Project P (Rand) Year 2019 300 000 2020 320 000 2021 350 000 2022 400 000 2023 410 000 Additional information: The supplier of Machine Q provided Border Engineering with the following information based on Border's requirements: The Net Present Value (NPV) for Machine Q is R80 640 and the Internal rate of Return (IRR) is 16%. Required: 1 Use the information provided to calculate the net present value (NPV) and IRR for Machine P. Use an alternative discount rate of 25% to calculate the IRR. (20) Which machine should Border Engineering's management consider buying? Give reasons for your answer. Your reasons must include both the relevant decision criteria applicable to NPV and IRR decisions as well as the application of these criteria in the recommendations. (13) Assignment Total: 100 Marks