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Please urgently help me with this question please Digi Corporation is considering replacing a hand operated machine with a brand new fully automated machine. The
Please urgently help me with this question please
Digi Corporation is considering replacing a hand operated machine with a brand new fully automated machine. The company has two types of machine to choose and they are mutually exclusive. The firm's cost of capital is Below are the expected cash flows generated by both machines?
Machine AA Machine BB
Mesin AA Mesin BB
Initial Investment RMRM
Year RM RM
Year RM RM
Year RM RM
Year RM RM
Year RM RM
Calculate the following:
a Payback period for both machines
b Net present value for both machines
c Internal rate of return for Machine BB
d Which machine should the company choose and why?
e What are the benefits of capital budgeting?
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