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IMMEDIATELY Mote: Please find the Present Value Tables at the end of this exam for your reference. Question 1 The manager of Kalimantan Ltd has

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IMMEDIATELY Mote: Please find the "Present Value Tables" at the end of this exam for your reference. Question 1 The manager of Kalimantan Ltd has identified a market for a new product that she estimates can be sold for $12 per unit. Research indicates that the business could produce and sell 14000 units each year for 5 years. The business will need to purchase a new piece of machinery to manufacture the product and the following information has been prepared relating to this purchase: Purchase cost of the machinery $100, 000 Estimated scrap value of the machinery after 5 years Operating costs $6 per unit produced Operating's wage $28,000 per year 11

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