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a) Shomoron Express Ltd is planning to expand Toweve this objective, the firm has to select 1 of 2 machines. These machines differ in terms

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a) Shomoron Express Ltd is planning to expand Toweve this objective, the firm has to select 1 of 2 machines. These machines differ in terms of economic life and capacity. How does the firm decide which machine to select, based on the available informis provided below? Use the replacement chain method to arrive at your choice of machine (10 marks) The after-tax cash flows are: Year Machine Maschine (50.000) 150 000) 15.000 10.000 15.000 10.000 15,000 10.000 100.000 10.000 6 10.000 Assume a required return of 15% 4 b) Explain the four basic behavioural traits exhibited by Micient markets ris marks) randomly

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