Question: solve without excel and show all calculations (B) The management of Fine Electronics Company is considering purchasing an equipment to be attached with the main

solve without excel and show all calculations

(B) The management of Fine Electronics Company is considering purchasing an equipment to be attached with the main manufacturing machine. The equipment will cost Rs. 6000 and will increase annual cash inflow by Rs.2200. The useful life of the equipment is 6 years. After 6 years it will have no salvage value. The management wants a 20% return on all investments. You are required to compute the net present value (NPV) of this investment project, and suggest to the management of Fine Electronics Company whether the equipment should be purchased or not? [5 Marks] (B) The management of Fine Electronics Company is considering purchasing an equipment to be attached with the main manufacturing machine. The equipment will cost Rs. 6000 and will increase annual cash inflow by Rs.2200. The useful life of the equipment is 6 years. After 6 years it will have no salvage value. The management wants a 20% return on all investments. You are required to compute the net present value (NPV) of this investment project, and suggest to the management of Fine Electronics Company whether the equipment should be purchased or not? [5 Marks]

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