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Question 1: Your company is considerine the replacement of production equioment. There are two cholices to consider and the company must choose only one of

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Question 1: Your company is considerine the replacement of production equioment. There are two cholices to consider and the company must choose only one of the available modeh. The required rate of return is 12.5% p.a. Assume a corporate tax rate of 30x and there hs no additional working capital requirements in this case study. Depreciation follows a straight line method on the cost of the equipment. The compeny expects to sell the equipment at the end of the terminal vear. WVPUT AREA Cucotion 18: Condiact s sensithity shalysib for optimistic and Pessimistic variations to Rewenues and Operating Costs. Report/ summariso the NiNs from each outcome in the areas marked yellow below. Determine the range Npvs for each model under the Optimistic and Pessimistic scenarios to enhance your dikcussians. Wh You coun make copies of the base diecthp to the input (green) area and copy the Npvs from how 60 as hard couded values into the yelliow area below, Question 18 is worth 0.5 marks Senshivity Anahris bummain tiblej Moded Charger to Cp- Coam iavh. Modein Megor? Question 1: Your company is considerine the replacement of production equioment. There are two cholices to consider and the company must choose only one of the available modeh. The required rate of return is 12.5% p.a. Assume a corporate tax rate of 30x and there hs no additional working capital requirements in this case study. Depreciation follows a straight line method on the cost of the equipment. The compeny expects to sell the equipment at the end of the terminal vear. WVPUT AREA Cucotion 18: Condiact s sensithity shalysib for optimistic and Pessimistic variations to Rewenues and Operating Costs. Report/ summariso the NiNs from each outcome in the areas marked yellow below. Determine the range Npvs for each model under the Optimistic and Pessimistic scenarios to enhance your dikcussians. Wh You coun make copies of the base diecthp to the input (green) area and copy the Npvs from how 60 as hard couded values into the yelliow area below, Question 18 is worth 0.5 marks Senshivity Anahris bummain tiblej Moded Charger to Cp- Coam iavh. Modein Megor

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