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One of the mixers in operation at Compound Ltd needs to be replaced. You have been offered R50,000 as a trade value for the old
One of the mixers in operation at Compound Ltd needs to be replaced. You have been offered R50,000 as a trade value for the old machine. The new mixers detail is as follows: It is expected that the new machine will generate net cash flow per annum as follows: Ignore tax and VAT implications. Required: Calculate the payback period. Calculate the net present value of the new machine, Should the new mixer be purchased? Explain
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