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Question Baze (Nig.) Plc. is proposing to go into a new line of business to expand its existing one. A machine used by Baze earlier

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Question Baze (Nig.) Plc. is proposing to go into a new line of business to expand its existing one. A machine used by Baze earlier cost N500,000.00 and the machine produces 55.000 units at a variable cost of N3.50 and fixed cost of N1.00/unit. The new machine proposed is to cost N350, 000 and an estimated production cost of N2.75/unit. The machine when brought in will have a total installation cost of N22, 550.00. The machine is to be fully depreciated in 4 years with a salvage value of N75,000.00. Baze's cost of funds is 25%. Required Compute the Net Present Value of the Investment and advice management of Baze (Nig.) plc accordingly

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