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Question 4 a) Assuming finance for the machines below is borrowed, at an interest rate of 10%, calculate the payback period for machine X and machine Y bebw to determine which machine is the better investment Machine X Cost: 10,000 Benefits: 2,500 per year Machine Y Cost: 12,000 Benefits: 4,000 per year Explain why the payback method used above is too simplistic. What factors are being ignored? b) c) Using the tables provided, determe the Present Vahve of an investment project which earns 35,000 per year for 30 years. Assume an interest rate of 7%. d) A bespoke engineering company is considering the viability of manufacturing a new product in Dublin Estimated fixed costs are 60,000 and estimated variable costs are 10 per unit. The proposed price for the new product is 20. Company Management have requested the following mformation - please provide, showing all calculations: 1) The amber of units that nust be sold to breakeven i) The inmber of units that must be sold to eam 30,000 target profit The profit that would result if 8000 units were sold. iv) The selling price that would have to be charged to give a profit of 30,000 on sales of 8000 units, with fixed costs of 60,000 and variable costs of 10 per unit. 111) e) Briefly outline the obligations of Engineers under Engineers Ireland Code of Ethics

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