Question1: A company is planning to purchase a new machine to expand the range of its products. There are two brands available in the market: A and B. Both machines are costing 70,000 OMR. The cash inflows given in the table are expected to be generated by both machines. Based on NPV and IPP, identify the better machine if the discounting rate is 7.5% and write a conclusion. Year Machine A Machine B 1 12000 13100 2 14200 13900 3 16100 15800 4 19000 18600 5 21700 20000 6 22200 22800
Question1: A company is planning to purchase a new machine to expand the range of its products. There are two brands available in the market: A and B. Both machines are costing 70,000 OMR. The cash inflows given in the table are expected to be generated by both machines. Based on NPV and IPP, identify the better machine if the discounting rate is 7.5% and write a conclusion. Year Machine A Machine B 1 12000 13100 2 14200 13900 3 16100 15800 4 19000 18600 5 21700 20000 6 22200 22800
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 1PB: A bookstore is planning to purchase an automated inventory/remote marketing system, which includes...
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Question1:
A company is planning to purchase a new machine to expand the range of its products. There are two brands available in the market: A and B. Both machines are costing 70,000 OMR. The
conclusion.
Year |
Machine A |
Machine B |
1 |
12000 |
13100 |
2 |
14200 |
13900 |
3 |
16100 |
15800 |
4 |
19000 |
18600 |
5 |
21700 |
20000 |
6 |
22200 |
22800 |
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