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Summerlea council wishes to generate income through recycling and diverting waste. The Council belleves that recycling waste unlocks the value of refuse, creates jobs and boosts the local economy. The feasibility committee of the council has called a meeting to evaluate an investment in the machinery needed for recycling. The machinery would also enable the council to satisfy the increasing demand for recycled products. It needs to choose from 3 different machines. The details of.life of the machines and the initial investments are as follows. In each case the initial investment represents the purchase of plant and equipment whose residual value will be 20% of initial cost, receivable in addition to the net cash flow, at the end of the life of the project. Forecast sales volume, selling price and other costs are as follows; The machine B and C have recently been introduced to the market and have not been fully tested in operating conditions. Because of the higher risk involved, the appropriate discount factor for machines B and C is believed to 11% per year, 2% higher than the discount rate for Machine A. Requirement For each of the three projects: 1. Calculate the accounting rate of return (based on the average investment method). II. Calculate the payback period. III. Calculate the net present value. c) Summerlea is an enterprising council with different trading arms. The Council strongly believes that the profits and surpluses generated through trading activitles can be used to help hold down the council tax and support other frontline services. Prepare a cash budget for one of Summerlea's, trading activities from January 2024 to April 2024 from the following budgeted data. The following additional information is available: 1. 35% of the customers pay cash and the remainder take 1 month to pay. 2. Rent is paid in advance for 6 months on 1rt of May and 1tr of November each year. 3. 45% of the purchases are paid for after 1 month and the remainder in 2 month' time. 4. Wages are paid in the current month. 5. Other overheads are paid after 2 months. 6- Capital expenditure is paid in the following month. 7. Opening cash balance for January is 2,800 overdraft. Additional Guidance 1- Clearly, show all the calculations and the formulae used in your calculations and it should be by you rather than copying figures from websites. 2- You must not depend on the disclosed ratios in the annual reports. You are required to prepare these ratios on your own

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