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(a) Rillet Plc, manufactures fishing nets. The firm considers investing in one of the two automated machine processes below: The initial outlay was payable immediately

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(a) Rillet Plc, manufactures fishing nets. The firm considers investing in one of the two automated machine processes below: The initial outlay was payable immediately for both automated machine processes as follows; Machine X: 750,000 and Machine Y:925,000. (i). Assuming that both machines have the same cost of capital of 6%, calculate the NPV for each machine. [4 marks] (ii). Advise the board of Rillet Plc regarding which automated machine process to opt for based on your figures in part i) by clearly showing the additional gain realisec compared to the machine that is not chosen. [2 marks

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