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Question 4 (7 marks) Healthy Food Litd is considering to invest in one of the two following projects to buy new machinery. Each option witi

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Question 4 (7 marks) Healthy Food Litd is considering to invest in one of the two following projects to buy new machinery. Each option witi last 5 years and have no salvage value at the end. The company's required rate of return for all imestment projects is 7%. The cash flows of the projects are provided below. Required: a) Identify which option of machinery should the company accept based on NPY method (Note: Please round up the resuit of each calculation of PV to 2 decimal ploces only far simplificotion) (4 marks) ANSWER al: b) Identify which aption of machinery should the company accept based on the simple payback period method if the firm maintairs a policy that every investment projett should recover the initial investment within 2 years. {3 marks }

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