Question
i want answers on urgent basis as soon as possible (a) Apple Business Corporation is considering the purchase of an equipment to save its costs.
i want answers on urgent basis as soon as possible (a) Apple Business Corporation is considering the purchase of an equipment to save its costs. Looking into your financial knowledge and expertise in investment appraisal, the corporation has provided you with following information; Cost of the equipment $750,000 The expected annual cash (before tax) to be provided by the equipment $200,000 Useful life of the equipment 5years Expected residual value (salvage value) $100,000 Corporate Tax rate 20% Discount rate 13% The equipment is to depreciate using straight line method. Required: Perform investment appraisal based on Net Present Value Method and suggest whether to accept or reject this investment project? (b) What is conflict between Capital Budgeting and Performance Evaluation? Explain logically with suitable example. (c) What is strategic significance of Post Investment Audit? Explain briefly PLzzzz hurry
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