Question: Takura ( Pty ) Ltd ( Takura ) is considering purchasing equipment that costs R 2 3 5 , 0 0 0 . The equipment

Takura (Pty) Ltd (Takura) is considering purchasing equipment that costs R235,000. The equipment has an estimated usefullife of 5 years and no salvage value. B Company believes that the annual cash inflows from using the equipment will beR65,000.Required:4.1 Calculate the net present value of the equipment assuming that Takura's cost of capital is 12%. Is the equipmentan acceptable investment?4.2 Calculate the net present value of the equipment assuming that B Company's cost of capital is 10%. Is theequipment an acceptable investment?

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