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3) Putin Glove Sdn Bhd plans to investment RM800,000 in new machine to expand production capacity. Following are the budgeted net cash flows given for
3) Putin Glove Sdn Bhd plans to investment RM800,000 in new machine to expand production capacity. Following are the budgeted net cash flows given for next 6 years: Years RM000 (Net Cash Inflows) 1. 150 2. 250 3. 300 4. 300 5. 250 6. 180 Discount factors at the cost of capital of 10% per annum are: Years () = 1.000 1.0.909 2. 0.826 3. 0.751 4. 0.683 5. 0.621 6. 0.564 a) Required: Calculate the payback period. b) Calculate Net Present Value using 10% discount rate for the company
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