rate of return is 9%. Year Cash Flow (R) 0 Purchase price of the machine - 30 000 000 1 10 000 000 2 9 000 000 3 15 000 000 4 2 000 000 5 1 000 000 Calculate the net present value (NPV) of the project and advise the company whether they should accept or reject the project based on the NPV. [TURN OVER] 6 FMA401V OCTOBER/NOVEMBER 2021 Question 3.2 (6 marks - 7.5 minutes) The freight solutions resolved to install alarm system on their freight transport. The forecasted cash flows and the initial cost of the operations are shown below. The owner has decided that a payback period of three years or less is acceptable. Calculate the payback period for the freight solutions and indicate whether the owner should purchase the machine or not. Years Cash Flows (Machine cost price) - 20 000 000 1 8 000 000 2 12 000 000 5 000 000 4 7 000 000 5 9 000 000