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Here is the alternatives from Q5 Question 6 For the alternatives given in Question 5, assume that this company has only $70,000 to invest now.

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Here is the alternatives from Q5

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Question 6 For the alternatives given in Question 5, assume that this company has only $70,000 to invest now. It is required to select the most economically feasible alternative or group of alternatives. Left-over cash can be invested in another alternative or in buying bonds. The details of these bonds are as follows Face value of each bond is $1,000 It can be bought at face value in the bond market. -Bond coupon rate is 6% Bond maturity is 5 years after purchase -Bond revenues are received every quarter At the end you receive face value of the bond You can use the NPW values to make a comparison between different alternatives. MARR is 7.4%. You can buy more than one bond ($1,000 each). However, you cannot invest in one particular alternative twice (e.g., you cannot have two instances of alternative A). Clearly state all scenarios for investing the available $70,000 along with calculations of NPW uestion 5 An organization is considering the purchase of new machines to automatically conduct some quality control tasks. The machines are expected to save production cost which is given below as Annual Income. The machines are expected to be part of the production process for 5 years. The company has a minimum attractive rate of return (NARR) of 7.4%. The following data is available for these new machines: Page 2 of 2 Alternative Initial AnnualAnnual Operation and Salvage Income Maintenance costs Cost value $5,100 $7,400 $6,400 $2,100 $28,000 8,900 $975 $65,000 $16,200 $1,220 40,000 $12,700$1,150 35,000 $9,300 $1,070 a] Calculate the Net Present Worth (NPW) of each alternative b] Using incremental IRR analysis, rank (1-4) the four alternatives based on economic feasibility

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