Question: Question 4 [27] Highveld Construction (Pty) Ltd is considering replacing two of its Front End Loader vehicles with a new, modern high-tech computer controlled Front
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Question 4 [27] Highveld Construction (Pty) Ltd is considering replacing two of its Front End Loader vehicles with a new, modern high-tech computer controlled Front End Loader that can be operated by remote control and does not require a human operator. Management has identified such vehicle, the Humanoid. They have collected the following information about this this vehicle: The initial required investment is R3 300 000, and the company's cost of capital is 16%. Required: Note: Show all your calculations and round off all calculations to the nearest whole number. 4.1 Use the information provided to calculate the Net Present Value and Internal Rate of Return for this proposed investment. (Use 25% as the alternative cost of capital.) (22) 4.2 Should the company invest in this new machine? Motivate your
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