Use the information provided below to answer the following questions: 3.1 Calculate the Payback Period of...

 

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Use the information provided below to answer the following questions: 3.1 Calculate the Payback Period of both machines. (Answers must be expressed in years, months and days.) (6 marks) I INFORMATION Malibu Limited intends purchasing a new machine and has the option of purchasing one of the following two machines: Cost Scrap value Estimated useful life Cost of capital Net cash flows per year: End of: Year 1 Year 2 Year 3 Year 4 Average Annual profit: Machine A R350 000 0 4 years 12% R 100 000 115 000 145 000 160 000 R42 500 Machine B R350 000 0 4 years 12% R 130 000 130 000 130 000 130 000 R42 500 Activate Windo Use the information provided below to answer the following questions: 3.1 Calculate the Payback Period of both machines. (Answers must be expressed in years, months and days.) (6 marks) I INFORMATION Malibu Limited intends purchasing a new machine and has the option of purchasing one of the following two machines: Cost Scrap value Estimated useful life Cost of capital Net cash flows per year: End of: Year 1 Year 2 Year 3 Year 4 Average Annual profit: Machine A R350 000 0 4 years 12% R 100 000 115 000 145 000 160 000 R42 500 Machine B R350 000 0 4 years 12% R 130 000 130 000 130 000 130 000 R42 500 Activate Windo Use the information provided below to answer the following questions: 3.1 Calculate the Payback Period of both machines. (Answers must be expressed in years, months and days.) (6 marks) I INFORMATION Malibu Limited intends purchasing a new machine and has the option of purchasing one of the following two machines: Cost Scrap value Estimated useful life Cost of capital Net cash flows per year: End of: Year 1 Year 2 Year 3 Year 4 Average Annual profit: Machine A R350 000 0 4 years 12% R 100 000 115 000 145 000 160 000 R42 500 Machine B R350 000 0 4 years 12% R 130 000 130 000 130 000 130 000 R42 500 Activate Windo Use the information provided below to answer the following questions: 3.1 Calculate the Payback Period of both machines. (Answers must be expressed in years, months and days.) (6 marks) I INFORMATION Malibu Limited intends purchasing a new machine and has the option of purchasing one of the following two machines: Cost Scrap value Estimated useful life Cost of capital Net cash flows per year: End of: Year 1 Year 2 Year 3 Year 4 Average Annual profit: Machine A R350 000 0 4 years 12% R 100 000 115 000 145 000 160 000 R42 500 Machine B R350 000 0 4 years 12% R 130 000 130 000 130 000 130 000 R42 500 Activate Windo

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To calculate the payback period for both machines A and B we need to determine the time ... View the full answer