Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed Two machines are being investigated Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed Two machines are being investigated Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed Two machines are being investigated Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed Two machines are being investigated Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed Two machines are being investigated Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed Two machines are being investigated Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed Two machines are being investigated 12 16 Coconut Plantations Pty Lid is contemplating acquiring a new machine to beused for a relatively short period until its new factory is built with computerisedequipment installed Two machines are being investigatedMachineCost ( S )7500020 000Cost savings Year500022500Cost savings Year 2800030 000Cost savings Year 32300037500Salvage value end Year 33450052500Calculate the ARR of each machine Which machine would you recommend 12 17 What are the PPs for each of the machines in the Coconut Plantations exercise 12 16 What are the risks associated with this investment analyses Payback periods Risks

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Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with

Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed. Two machines are being investigated.

12.16 Coconut Plantations Pty Lid is contemplating acquiring a new machine to beused for a relatively short period until its new factory is built with computerisedequipment installed . Two machines are being investigatedMachineCost ( S )7500020 000Cost savings - Year500022500Cost savings - Year 2800030 000Cost savings - Year 32300037500Salvage value - end Year 33450052500Calculate the ARR of each machine . Which machine would you recommend ? 12.17 What are the PPs for each of the machines in the Coconut Plantations exercise 12.16?What are the risks associated with this investment analyses? Payback periods: Risks: