Question 1 Investment of RM820,000 in new machine to expand production capacity is being consideration by a company. Following are the budgeted cash flows given for next 6 year 1st year 2nd year 3rd year 4th year 5th year 6th year cash flow 80 110 160 250 220 180 1. Calculated discounted payback period Discount factors at the cost of capital of 10% per annum 1st year 2nd year 3rd year 4th year 5th year 6th year 0.909 0.826 0.751 0.683 0.621 0.564

Investment of RM820,000 in new machine to expand production capacity is being consideration by a company. Following are the budgeted cash flows given for next 6 year 1. Calculated discounted payback period Investment of RM820,000 in new machine to expand production capacity is being consideration by a company. Following are the budgeted cash flows given for next 6 year 1. Calculated discounted payback period