Khan Engineering Ltd has the opportunity to invest in two competing machines. Details of each machine are
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Khan Engineering Ltd has the opportunity to invest in two competing machines. Details of each machine are as follows:
The business has a cost of capital of 10 per cent.
State which of the two machines, if either, should be acquired.
Transcribed Image Text:
Initial outlay Cash flows 1 year's time 2 years' time 3 years' time Machine A £000 (100) 50 70 Machine B £000 (140) 60 80 32
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