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39. Zass Electronics is considering purchasing an electronic casting system. The systems are mutually exclusive. System A has an initial investment of RM70,000 and is
39. Zass Electronics is considering purchasing an electronic casting system. The systems are mutually exclusive. System A has an initial investment of RM70,000 and is expected to generate a return of RM40,000 in year one, RM30,000 in year two, RM10,000 in years three and four. System B requires an RM30,000 initial investment and is expected to generate an RM30,000 annual return for four years. Calculate the net present value of System A if the firm's cost of capital is 10 percent. Answer A. RM3,240 B. RM 6,500 C. RM5,499 D. RM5,559
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