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QUESTION FOUR marks] Nampak Limited is considering acquiring new machinery for its production facility....

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Accounting

QUESTION FOUR marks]
Nampak Limited is considering acquiring new machinery for its production facility. The following information has been provided:
\table[[,,],[Cost,R900000,],[Useful life,5 years,],[Scrap value,NIL,],[,,],[,],[Year 1,Net cash inflow,Net profit],[Year 2,180000,0],[Year 3,220000,40000],[Year 4,250000,70000],[Year 5,280000,100000],[,320000,140000]]
The minimum required rate of return is 10%.
Machinery is depreciated on a straight-line basis over its useful life.
REQUIRED
Determine the following:
4.1 The payback period (3 marks)
(answer to be reflected in years, months, and days)
4.2 Net present value (3 marks)
4.3 The accounting rate of return (3 marks)
(answer to be rounded to 2 decimal places)
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