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Consider the following capital budgeting problem. The following two machines, A & B , are mutually exclusive. The cash fows associated with each machine are
Consider the following capital budgeting problem. The following two machines, A & B are mutually exclusive. The cash fows associated with each machine are tabulated as follows; all numbers are in thousand dollars; the relevant discount rate is for both machines. Year Machine A Machine B $$ a Calculate the net present value for each machine investment, assuming a rate of return. b Calculate the accounting rate of return for each machine investment. c Calculate the internal rate of return for each machine investment. d Calculate the payback period for each machine investment. e which one would you recommend the company to purchase?
Consider the following capital budgeting problem. The following two machines, A & B are mutually exclusive. The cash fows associated with each machine are tabulated as follows; all numbers are in thousand dollars; the relevant discount rate is for both machines.
Year Machine A Machine B
$$
a Calculate the net present value for each machine investment, assuming a rate of return.
b Calculate the accounting rate of return for each machine investment.
c Calculate the internal rate of return for each machine investment.
d Calculate the payback period for each machine investment.
e which one would you recommend the company to purchase?
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