Question: please answer my questions Question 1 (25 Marks) SQU LLC is considering purchasing the following new machines which relevant data is presented below. Albana Albanu

 please answer my questions Question 1 (25 Marks) SQU LLC is

considering purchasing the following new machines which relevant data is presented below.

Albana Albanu Albana Albanu 1 Cost 580,000 840,000 Life Span Salvage value

please answer my questions

Question 1 (25 Marks) SQU LLC is considering purchasing the following new machines which relevant data is presented below. Albana Albanu Albana Albanu 1 Cost 580,000 840,000 Life Span Salvage value 5,000 2,000 Yearly Cost Savings 185,000 195,000 Tax Rate 25% Discount Rate (a) Evaluate the above capital expenditure proposal using the three different methods of Net Present (10 marks) Value, the Internal Rate of Return and the Payback Period. (Note: You are required to clearly indicate the appropriate decision and assume straight-line depreciation method) (b) Numerical analysis based on the above calculation methods forms only a part of the capital (10 m budgeting strategy. Do you agree? Explain. (c) Given the results in () above, do you agree that the IRR method is superior to the NPV method? (5 Explain

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