Marsh Limited has investigated the possibility of investing in a new machine. The following data have been
Question:
Marsh Limited has investigated the possibility of investing in a new machine. The following data have been extracted from the report relating to the project:
• Cost of machine on 1 January Year 6: £500,000.
• Estimated scrap value at end of Year 5: Nil.
The company’s cost of capital is 8%.
Required
Evaluate the acceptability of the project using the net present value method of investment appraisal.
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Related Book For 
Financial And Management Accounting An Introduction
ISBN: 9781292244419
8th Edition
Authors: Pauline Weetman
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