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A machine costing R1,500,000 is expected to yield the following net cash flows: Year 1:R600,000 Year 2: R800,000 Year 3:R120,000 Year 4:R240,000 Year 5: R600,000

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A machine costing R1,500,000 is expected to yield the following net cash flows: Year 1:R600,000 Year 2: R800,000 Year 3:R120,000 Year 4:R240,000 Year 5: R600,000 o The opportunity cost of capital has been fixed at 12%. Determine and explain whether this investment should be made or not

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