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INFORMATION Anat Ltd is considering the purchase of a machine for its production facility. The price of the new machine is R360000. The cost to

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INFORMATION Anat Ltd is considering the purchase of a machine for its production facility. The price of the new machine is R360000. The cost to transport the machine to the factory is R24000, and the installation cost is R16000. The purchase of the new machine will result in an increase in net working capital by R100 000. The machine has a useful life of 4 years and depreciation is calculated over 4 years using the straightline method. The tax rate applicable to the company is 30%. The profits before interest, depreciation and taxes expected to be generated by the new machine are as follows: Four years after the purchase, the machine can be sold for R130 000 and the removal and clean-up costs are expected to be R10000. The net working capital will be recovered

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