Question: 5 . 2 REQUIRED Study the information provided below and calculate the following. Use the discount factors from Appendix 2 only. Ignore taxes. 5 .
REQUIRED Study the information provided below and calculate the following. Use the discount factors from Appendix only. Ignore taxes. Net Present Value. Your answer must include the calculations of the present values and NPV marks Internal Rate of Return expressed to two decimal places Your answer must include two net present value calculations using consecutive cost of capital rates and interpolation. marks INFORMATION Maxi Limited is looking at the possibility of investing in a new machine. The machine would cost R and its cash operating expenses are budgeted at R per year. On the benefit side, it is estimated that the new machine would generate cash sales of R per year. The machine is expected to have a useful life of five years. The cost of capital is
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