Machine A Costs Rs 100000 payable immediately .Machine B costs Rs 120000 halpf payable immediately and half payable in one year's time .The cash receipts expected are as follows: Year. Machine A MachineB 1. 20000 - 2. 60000 60000 3. 40000 60000 4. 30000 80000 5. 20000 - At 7% opportunity cost ,which machine should be selected on the basis of NPV?

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2. Machine A costs Rs. 1,00,000 payable immediately. Machine B costs Rs. 1,20,000 half payable immediately and half payable in one year's
time. The cash receipts expected are as follows: Year (at end) Machine A Machine B Rs. 20,000 60,000 60,000 40,000. 60,000 30,000
80,000 20,000 At 7% opportunity cost, which machine should be selected on the basis of NPV? ..... . .

Answer rating: 100% (QA)

lets calculate the Net Present Value NPV for both Machine A and Machine B based on the given informa... View the full answer