Question: please help me solve this task asap, thank you 1 A company buys a machine today for $10,000 2 Material costs at current prices will
1 A company buys a machine today for $10,000 2 Material costs at current prices will be $1,500 pa for three years Material costs inflate at 8% pa 3 Labour savings at current prices will be $4,000 pa for three years Labour costs inflate at 5% pa 4 Overhead savings at current prices will be $2,000 pa for three years Overhead costs inflate at 10% pa 5 Money cost of capital =15.5% 5 General inflation =7% Required: Calculate the NPV of the project, using: (i) the money method; (ii) the effective method; (iii) the real method. Ignore taxation
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