Question: Future Corp. is evaluating a new machine with the following details: Initial Cost: $700,000 Cash Inflows: Year 1: $200,000; Year 2: $250,000; Year 3: $300,000;
Future Corp. is evaluating a new machine with the following details: Initial Cost: $700,000 Cash Inflows: Year 1: $200,000; Year 2: $250,000; Year 3: $300,000; Year 4: $350,000 Salvage Value (Year 3): $50,000 Discount Rate: 10% Calculate a & explain your recommendation of b: a) NPV calculation, explaining each step (time value of money, salvage value inclusion). b) Investment recommendation, justifying your answer with NPV results and qualitative factors (e.g., strategic alignment, risk assumptions).
q2) A survey of 20 Australian children's weekly radio listening hours yielded: Data: 12, 18, 16, 9, 20, 14, 17, 13, 11, 10, 16, 19, 15, 12, 18, 10, 20, 15, 9, 21 Population = 10.0 hours Discuss: a) Sample mean calculation and its relevance to the business context. b) 90% confidence interval (Z/2 = 1.645), interpreting the results for radio programming decisions. Address statistical assumptions and limitations.
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