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Bersatu Teguh Berhad is considering the purchase of a new bus to add to its existing fleet of tourist busses. They are considering two possible
Bersatu Teguh Berhad is considering the purchase of a new bus to add to its existing fleet of tourist
busses. They are considering two possible alternatives and they have estimated that the cash flows
from the four different choices are as follows:
a Rank these buses in order of acceptability, using:
To find negetive value
i net present value NPV at a cost of capital NPV use or
ii internal rate of return IRR
iii payback period
b Decide the best acceptable bus to purchase if the different alternatives were mutually
exclusive and there was no capital rationing. Give reasons for your answer.help
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