Roarke owns a small printing company where publishers outsource the printing of books to. The business has been doing so well recently Roarke has found that he has to turn away some business as he currently does not have the capacity to meet the demand. Roarke has researched buying a new printing machine and he thinks he has come up with a viable option. The new printing machine would cost $40,000. Roarke expects the following increase in number of books printed with the new machine: Year Number of books 1 320 2 300 3 260 4 240 5 320 6 460 Each book costs Roarke an average of $50 to print and he sells them at an average of $100. Roarke requires a 10% return on investment. Required: a) Calculate the net present value of the investment. (8 Marks) b) Explain fully the THREE disadvantages of using the Average Rate of Return for investment decisions. (6 Marks) c) State any TWO qualitative considerations that Roarke should take into account before choosing to invest in this particular printing machine. (1 Mark)