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Powertec Bhd is considering whether to purchase a new machine. Machines A and B are available for RM98,000 each. Earnings after taxation are as follows:
Powertec Bhd is considering whether to purchase a new machine. Machines A and B are available for RM98,000 each. Earnings after taxation are as follows: Year Machine A (RM) Machine B (RM) 1 35,000 19,000 2 33,000 25,000 3 40,000 33,000 4 24,000 49,000 5 16,000 32,000 By using a discount rate of 10%, you are required to evaluate the two alternatives using the following: a) Payback method
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