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QUESTION 1 The Pandora Company planning to buy a new machine, Equal Model that can process inventory more effectively to replace the Young Model. You
QUESTION 1 The Pandora Company planning to buy a new machine, Equal Model that can process inventory more effectively to replace the Young Model. You as a finance manager of Dynamite Universe Company will help the top management of the company in making decision based on your ani Based on the information above with marginal taxes rate 25% and investment taxes credit 20%, perform a complete report for Pandora Company using the correct format by calculating; a) Initial investment (10 marks) b) Cash flow difference (10 marks) c) Terminal cash flow (4 marks) d) Incremental cash flows (6 marks) QUESTION 1 The Pandora Company planning to buy a new machine, Equal Model that can process inventory more effectively to replace the Young Model. You as a finance manager of Dynamite Universe Company will help the top management of the company in making decision based on your ani Based on the information above with marginal taxes rate 25% and investment taxes credit 20%, perform a complete report for Pandora Company using the correct format by calculating; a) Initial investment (10 marks) b) Cash flow difference (10 marks) c) Terminal cash flow (4 marks) d) Incremental cash flows (6 marks)
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