Question: Please help me in this question Question 4 Ace Body is considering purchasing a new piece of equipment and has two possible choices, but can

Please help me in this question

Please help me in this question Question 4 Ace Body is considering

Question 4 Ace Body is considering purchasing a new piece of equipment and has two possible choices, but can only raise enough funds to proceed with one of them. Using the Payback Period decision model, which purchase would you recommend Ace Body to undertake if there is a three year cut-off period for recapturing the initial cash outflow? Assume that the cash flows are equally distributed over the year for Payback Period calculations. Projects A B Cost -$10000 -$25000 Cash Flow Year 1 E4000 $2000 Cash Flow Year 2 $4000 E8000 Cash Flow Year 3 14000 E12000 Cash Flow Year 4 E4000 $20000 Cash Flow Year 5 14000 $26000 Cash Flow Year 6 $4000 E32000 a. Analyse the extent to which the market in which Ace Body Gym operates is subject to asymmetric information. b. Explain the measures that governments can take to regulate the gym and fitness industry. How effective are the use of these regulations

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