Your company has to choose between two mutually exclusive investments A and B, each of which has a life of four years. Machines A and B cost ₵50,000.00 and ₵45,000.00 respectively. The year-end net cash flows would be as follows: Year Machine A Machine B 1 25,000 12,000 2 24,000 15,000 3 16,000 20,000 4 10,000 35,000 At the end of the fourth year, the scrap value of machine A is estimated to be ₵5,000.00 and that of machine B is ₵4,000.00. The company’s cost of capital is 15%. You are required to recommend to your Chief Executive Officer which investment the firm should undertake based on the following techniques: i. Payback period ii. Discounted payback iii. Average accounting return iv. Net present
