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A company is considered the purchase of a machine the machines A and B are available for $80,000 each Earnings after taxation are as Year
A company is considered the purchase of a machine the machines A and B are available for $80,000 each Earnings after taxation are as Year Machine A Machine B $ 1 24,000 8.000 2 32,000 24,000 3 40.000 32 000 4 24 000 49.000 5 16.000 32.000 Evaluate the two alternatives according to (a) Payback Method (b) Rate of Return Method and (c). Net Present Value Method (A discount rate of 10% is to be used
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