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note please show working ( no Excel) and thank you. QUESTION 6 Sushi Food is considering the purchase of a new machine for its expansion.
note please show working ( no Excel) and thank you.
QUESTION 6 Sushi Food is considering the purchase of a new machine for its expansion. Its finance manager has developed the following after-tax cash flows forecast. Year 0: Total investment = - $21,000 Year 1: Net cash flow $5,900 Year 2: Net cash flow $6,100 Year 3: Net cash flow $6,250 Year 4: Net cash flow $6,600 Year 5: Net cash flow $6,800 If the required rate of return is 12%, should Sushi Food proceed with the expansion plan? [Use Net Present Value (NPV) and Internal Rate of Return (IRR) to decide] Use 2-decimal places in your calculation. [Total: 10 marks]Step by Step Solution
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