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QUESTION 1 The Pandora Company planning to buy a new machine, Equal Model that can process inwentory more effectively to replace the Sign Model. You
QUESTION 1 The Pandora Company planning to buy a new machine, Equal Model that can process inwentory more effectively to replace the Sign Model. You as a finance manager of Pandora Company will help the top management of the company in making decision based on your analysis. Here is information related to the both models. Pa Based on the information above with marginal tixes fate 25% and investment taxes credit 20%. perform a complate report for Pandora Company using the correct format by calculating: a) Initial irvestment (10 marks) b) Cash flow difference (10 marks) c) Terminal cash flow (4 marks) c) Incremental cash flows (B marks)
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