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A company plans to buy a machine from indie motors Ghana worth GHS200m, half of which is due on delivery, with the balance due exactly
A company plans to buy a machine from indie motors Ghana worth GHS200m, half of which is due on delivery, with the balance due exactly one year later (to be paid at zero interest rate). The company expects a revenue stream of GHS50m per annum for five years. After exactly five years, the machine will be sold for GHS10m. What is the net present value if the company has to borrow at 20% per annum to finance the purchase and money can be saved at the rate of 15% per annum over the five year period??
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