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Big Construction Ltd is considering to invest in one of the following projects. Each option will last 4 years and have no salvage value at

Big Construction Ltd is considering to invest in one of the following projects. Each option will
last 4 years and have no salvage value at the end. The company's required rate of return for all
investment projects is 9%. The cash flows of the projects are provided below.
Required:
Based on Net
the best machinery to invest.
Would the decision in question (a) change if company decides to use simple payback
period as their preferable capital budgeting technique and if company maintains a policy
that every investment project should recover initial investment within 2 years?
iii. Critically review and recommend the best capital budgeting technique out of the above two
methods. Your answer should link with the information given in the case study and your
calculation
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