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QUESTION 2 (12) A machine costing R1,500,000 is expected to yield the following net cash flows: Year 1:R600,000 o Year 2:R800,000 Year 3:R120,000 Year 4:
QUESTION 2 (12) A machine costing R1,500,000 is expected to yield the following net cash flows: Year 1:R600,000 o Year 2:R800,000 Year 3:R120,000 Year 4: R240,000 o Year 5: R600,000 The opportunity cost of capital has been fixed at 12%. Determine and explain whether this investment should be made or not
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