Question
A machine costing Sh. 3,000,000 must be replaced at the end of 8 years. The resale value of the machine at the time of replacement
A machine costing Sh. 3,000,000 must be replaced at the end of 8 years. The resale value of the machine at the time of replacement is estimated to be 600,000. At what annual discount rate (compounded annually) would it be equally economical to use a similar machine costing 4,000,000 with a life of 8 years and a resale value of Sh. 800,000?
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Financial Management For Decision Makers
Authors: Peter Atrill
9th Edition
1292311436, 978-1292311432
