Question: QUESTION 5 (20 MARKS) Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5 . REQUIRED
QUESTION 5 (20 MARKS) Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5 . REQUIRED Use the information provided below to answer the following questions: 5.1 Caculate the Payback Period of Machine A (expressed in years, months and days) (3 marks) 5.2 Caiculate the Accounting Rate of Retum on average investment of Machine A (expressed to two decimal places). (4 maks) 53. Calculate the Net Present Value (NPV) of both machines. (6 marks) 5.4 Based on the Net Present Value, which machine should Aspen Limited purchase? Why? ( 1 mark) 5.5 Calculate the Intemal Rate of Retum (IRR) of Machine B (expressed to two decimal places). Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation. (6 marks) INFORMATION Aspen Linited intends purchasing a new machine and has the option of purchasing Machine A or Machine B. Th- fallowinn dataile annlv. Incate taxes
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