Question
3. Almond LTD are considering a 3 year project. The initial investment of 120,000 was in machines and 8% of its original value will
3. Almond LTD are considering a 3 year project. The initial investment of 120,000 was in machines and 8% of its original value will be recoverable at the end of the project. The discount rate is 10%. Do not account for tax and inflation. Further information: Annual sales (18,000 units at 8): Annual Costs: Labour Materials Calculate the NPV of the project. 144,000 50,000 25,000 (20 marks)
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Management and Cost Accounting
Authors: Colin Drury
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