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please write the full calculation. Thank you Machine A $660,000 Machine B $360,000 Net cash inflows Initial investment Year 1 2 3 4 5 $128.000

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Machine A $660,000 Machine B $360,000 Net cash inflows Initial investment Year 1 2 3 4 5 $128.000 182,000 166,000 168,000 450,000 $88.000 120,000 96,000 86,000 207.000 Note that Simon plans to mortise both machine over a five-year period. At the end of that time, the machines would be sold, thus accounting for the large fifth-year net cash flows. Simon believes that the both machines are equally risky and that acceptance of either of them will not change firm's overall risk. He therefore decides to apply the firm's 13% cost of capital when evaluating the machines. The firm requires all projects to have a maximum payback period of four years Page 1 Required to be reported in your single report: In this case study, assumes yourself as a financial manager advisor to Ford firm. A financial advisor role is required to prepare an executive-style report, in a manner consistent with what is expected in the real world by a typical Board of Directors. This report is case study for evaluation projects using capital budgeting techniques. The report has maximum length of 25000 words and consists of the following questions: 1. Show the project's evaluation steps and results as follow: - Use the payback period to assess the acceptability and relative rank of each machine - Assuming equal risk, use Net present value (NPV) and Internal rate of return (IRR) techniques to assess the acceptability and relative ranking of each machine 2. Summaries the results that are indicated by all the three techniques used above. 3. Use your facts in key finding to indicate on a theoretical and practical basis which machine would be preferred? Explain why? 4. What other factors should the fim consider? Specify any further factors the fimm might overlooked or other factors that should have been taken into consideration while valuation 5. Which, if either of the projects the firm should acquire if the firm has: 1. Unlimited funds 2. Capital rationing

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