TAON INVESTMENT APPRAISAL OBJECTIVE: To evaluate the attractiveness of the potential investment in the new production machinery using the information provided in the case study. Required: Calculate the payback period for the investment to the nearest month. (2 marks) Identify the relevant cash flows and so calculate the Net Present Value ("NPV") for the investment, applying the discounted cash flow method at the company's required rate of return, stating your assumption for any costs you exclude. Comment on whether the investment should be undertaken according to this method, giving your reasoning. (10 marks) Using the information available, the calculations for the payback period and Net Present Value, advice on whether the company should undertake the project or not. (3 marks)