Question: 39. Zass Electronics is considering purchasing an electronic casting system. The systems are mutually exclusive. System A has an initial investment of RM70,000 and is

 39. Zass Electronics is considering purchasing an electronic casting system. The

39. Zass Electronics is considering purchasing an electronic casting system. The systems are mutually exclusive. System A has an initial investment of RM70,000 and is expected to generate a return of RM40,000 in year one, RM30,000 in year two, RM10,000 in years three and four. System B requires an RM30,000 initial investment and is expected to generate an RM30,000 annual return for four years. Calculate the net present value of System A if the firm's cost of capital is 10 percent. Answer A. RM3,240 B. RM 6,500 C. RM5,499 D. RM5,559

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