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Question 4 Pio.com is well establishes company and currently they are considering to replace one of their operation machine. They have gathered the following cash
Question 4 Pio.com is well establishes company and currently they are considering to replace one of their operation machine. They have gathered the following cash flow of the alternative replacement machine. The company's policy is recovering the cost of investment in a shorter period. Your first task on the day you join the company is to evaluate using Net Present Value (NPV) method on the replacement of machine and recommend the type of machine to be purchased by the company. The company's cost of capital is 10%. Machine A $14,000 Machine C $18,000 Initial Investment Years (t) 1 2 3 4 5 $6,000 $6.000 $6,000 $6,000 $6,000 Machine B $15,000 Cash inflows $7,000 $7,000 $7.000 $7.000 $7,000 $12,000 $2,000 $2,000 $2,000 $2.000 (15 marks) Question 5 Whirly Solution is a service provider company establish for almost 10 years. With the current pandemir situation the company is afraid to invest in new proiects Board of directors
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