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1. Poppy company has 50000 baht to invest for a new machine, but there are 2 choices from 2 countries: China and New Zealand. Information

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1. Poppy company has 50000 baht to invest for a new machine, but there are 2 choices from 2 countries: China and New Zealand. Information is indicated that: China: the cost of machine is 45000 baht and the machine can use for 5 years. Moreover, the machine can sell 2000 baht after 5 year as a savage value. This machine can increase sales as 27000 baht per year, and increase cost 8000 baht per year (12% as an acceptable rate of return). New Zealand: the cost of machine is 25000 baht and the machine also can use for 5 years. The machine can increase sales as 12000 baht per year, and increase cost 2000 baht per year (10% as an acceptable rate of return). Taxes rate is 20% of corporate profit. If the company is considering to buy the new machine from 1 out of 2 countries, which country should company invest in? and why? 1.1 If the company uses "Payback Period" (15 points) 1.2 If the company uses "Net Present Value" (15 points) 2. Momo Limited Company sells 400 products per month. However, manager would like to decrease a product price from 250 baht to 230 baht per product, and increase variable cost from 150 baht to 160 baht per product. Moreover, the company has to add the expense of advertisement from 35,000 baht to 50,000 baht. From this idea, the Momo Company can increase the sales 100%. You have to do a brake-even point from each solution, and find out which solution would you like to choose? (20 points)

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