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3.3 Consider the following information about two machines: (10) Initial Investment Expected annual cash flow Expected life span Machine A R30 000 R12 000 4
3.3 Consider the following information about two machines: (10) Initial Investment Expected annual cash flow Expected life span Machine A R30 000 R12 000 4 years Machine B R32 000 R15 000 3 years Based on the NPV and IRR techniques, which machine should be bought (10% rate of return)? Explain your answer. 3.4 Is it possible that the NPV and IRR methods can result in conflicting rankings? Please explain your
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