Question 1 Instructions:The finance director has asked you to prepare an investment appraisal report based on the above information. Your report should consider whether to accept or reject the investment of the machine based on each of the investment appraisal methods as outlined below. Your report should include an analysis of:a) The payback method to comment on the sales director’s assertion that the investment will be recovered within two years.b) The net present value of the proposed investment.c) The internal rate of return of the proposed investment.d) How is the accounting rate of return different to other methods of investment appraisal?e) Why the net present value investment appraisal method is preferred to other investment methods such as the payback method, and the internal rate of return?Note: Calculation and written answers are required for a, b and c. Answers for d and e should have written responses of approximately 100 words each.