Question: Subject : Engineering management kindly, show full working answer 1. Tata Engineering Industries wishes to buy hydraulic excavators for a FIVE (5) year project between

Subject : Engineering management kindly, show

Subject : Engineering management kindly, show full working answer

1. Tata Engineering Industries wishes to buy hydraulic excavators for a FIVE (5) year project between the Red, Blue and Green. Expected cash flows given in the Table Q1 below. Table Q1 a. Calculate the discount factor and hence the Net Present Value (NPV) based on an interest rate of 10%. (12 marks) (CLO3:PLO12:C3) b. Calculate the Payback Period for project Red, Blue and Green. (12 marks) (CLO3:PLO12:C3) c. In relation to Q1a and Q1b above by using NPV and Payback Period technique, determine should Tata Engineering Industries invest in the three proposals and if so, which is preferable? (6 marks) (CLO2:PLO12:C4)

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