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A company is evaluating its capital expenditure plans for the year 2021 and has asked to assist in evaluating three proposals using different capital investment
A company is evaluating its capital expenditure plans for the year 2021 and has asked to assist in evaluating three proposals using different capital investment techniques.The company's cost of capital is 10% All investments are to be depreciated at 20% on cost per year. The corporation tax rate applicable is 12.5 % payable one year in arrears. The net present value (NPV) discount rates at 10% are as follows:
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