Thungela Limited intends acquiring new plant and equipment and has provided the following information: Option 1 The plant and equipment can be acquired at a cost of R1 600 000. This equipment will have a five-year useful life and will be depreciated on a straight-line basis to its scrap value of R60 000. The new equipment will result in increases in net cash inflows as follows: Year Net cash inflows R 1 350 000 2 370 000 3 410 000 4 440 000 5 480 000 Option 2 Plant and equipment can be imported at a cost of R1 200 000 and a further R120 000 will have to be incurred on transport and installation costs