Question: A company can purchase a machine, which would yield net revenues of 5 0 , 0 0 0 pa . over the first two

 A company can purchase a machine, which would yield net revenues of £50,000 pa. over the first two years and then £40,000 p.a. for a further two years. After these four years of operation the machine can be scrapped for £10,000. Using NP as the criterion when a discounting rate of 10% p.a. is in operation, what is the maximum price that the company would be prepared to pay for such a machine? 

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