REQUIRED 4.1CalculatethePaybackPeriodofMachineA(expressedinyears,monthsanddays).4.24.3CalculatetheAccountingRateofReturnoninitialinvestment(expressedtotwodecimal4.44.5(3marks)CalculatetheNetPresentValueofbothmachines.places)ofbothmachines.CalculatetheInternalRateofReturnofMachineB(expressedtotwodecimalplaces).Ifthetimevalueofmoneyistakenintoaccount,whichmachineshouldbechosen?Why?(8marks)(8marks)(5marks)(1mark) INFORMATION The directors of Lomax Ltd intend expanding the company and they have the choice of purchasing one of two machines at the end of 2022 viz. Machine A or Machine B. Both machines have a five-year life, with only Machine A having a residual value of R300000. The annual volume of production of each machine is estimated at 6000 pallets (comprising 500 bricks each), which can be sold at R520 per pallet. Depreciation is calculated on the machines using the straight-line method. Machine A costs R4 800000 excluding installation cost of R300000. The annual variable costs are estimated at R1 100 000. A major overhaul at a cost of R200 000 is expected to be undertaken at the end of year three. Fixed costs are estimated at R500 000 (excluding depreciation). Machine B costs R5 100000 including installation costs of R400 000. Its annual variable costs are estimated at R1 050000 . Fixed costs are the same as for Machine A. The cost of capital may be assumed to be 14%