Masjoke Company Is considering an investment on a new machine that involves a total purchase ans assembly
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Question:
Masjoke Company Is considering an investment on a new machine that involves a total purchase ans assembly cost of RM30 000. The usage of this new machine is expected to generate a yearly cash flow for five consecutive years: end of first year RM 4000, end of second and third year RM 5000, end fourth year RM 6000 and fifth year RM 8000. If the company requires a yearly 18 per cent rate of return on its investment:
I) calculate the net present (NVP) for the project
II) choose either the company should continue with its investment
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