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The Roll Company Ltd is thinking about investing in a large machinery that will see the company becoming one of the top companies within the

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The Roll Company Ltd is thinking about investing in a large machinery that will see the company becoming one of the top companies within the manufacturing industry. The following information relates to the proposed machinery for investment: Machine B $90,000 Machine C $90,000 Machine A Initial investment in project $90,000 Annual cash increase in operations: Year 1 80,000 Year 2 10,000 Year 3 45,000 45,000 45,000 45,000 90,000 0 0 The company's cost of capital is 14%. Estimated useful life of each project is Required: (a) Compute the following for each project: (i) Payback period Net present value (iii) ARR (iv) Profitability index (ii)

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