Question: Calculate the net present value of machine A + value for machine B (round off amounts to the nearest Rand). Machine A Machine B Initial

Calculate the net present value of machine A +

Calculate the net present value of machine A + value for machine B (round off amounts to the nearest Rand).

Machine A Machine B Initial cost R100 000 R110 000 5 years 5 years R10 000 0 Expected economic life Expected disposal/residual value Expected net cash inflows End of: Year 1 Year 2 R R 34 000 27 000 33 000 33 000 Year 3 33 000 32 000 30 000 Year 4 33 000 Year 5 5 26 000 33 000 Depreciation per year 18 000 22 000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Etion Limited is planning to acquire new plant and machinery for its manufacturing plant. The company is considering the following two alternatives: Option 1 Plant and machinery can be purchased at a...

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) 3.2 Name one...

QUESTION 2 Machine A Machine B Initial cost R100 000 R110 000 5 years 5 years Expected economic life Expected disposal/residual value Expected net cash inflows R10 000 0 R R End of: Year 1 34 000 33...

The company estimates that its cost of capital is 14%. Calculate the internal rate of return for Machine B. [ 6Marks] Machine A Machine B Initial cost R100 000 R110 000 5 years 5 years R10 000 0...

The company estimates that its cost of capital is 14%. Calculate the payback period for Machine A and B (answers must be expressed in years, months and days). [ 5 Marks] Machine A Machine B Initial...

Canny Construction is looking to invest in new construction equipment. The following information has been extracted from reports relating to the project Investment R90 000 Average Annual Profit R 26...

The company estimates that its cost of capital is 14%. Calculate the accounting rate of return (on average investment) for Machine A. (answer rounded off to 2 decimal places). [ 5 Marks] Machine A...

INFORMATION Malibu Limited intends purchasing a new machine and has the option of purchasing one of the following two machines: Machine A Machine B Cost R350 000 R350 000 Scrap value 0 0 Estimated...

3.4 Calculate the Net Present Value of Machine A. (Round off amounts to the nearest Rand.) | (5 marks) INFORMATION Malibu Limited intends purchasing a new machine and has the option of purchasing one...

The following depicts the long run average cost curve (LRAC). SRAC represents the short run average costs and SRMC represent the short run marginal costs. 1. From Scale 1 to Scale 3, what will be...

1.44.A structural member is subjected to a set of forces and moments. Each separately produces the stress conditions at a point shown in Fig. P1.44. Determine the principal stresses and their...

What is the ending inventory under variable cost? Given the following data. Beginning Inventory in Units - O Units produced - 12,700 Units Sold - 11,300 Sales - $400,000 Material Cost (unit...

When older adults have difficulty with transportation and communication, or may be reluctant to request needed assistance to which they are entitled, they may be in need of: Group of answer choices...