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Rank the machines using the Net Present Value method: A) 1st=A, 2nd=B, 3rd=C B) 1st=B, 2nd=A, 3rd=C C) 1st=C, 2nd=A, 3rd=B D) 1st=A, 2nd=C, 3rd=B
Rank the machines using the Net Present Value method:
A) 1st=A, 2nd=B, 3rd=C B) 1st=B, 2nd=A, 3rd=C C) 1st=C, 2nd=A, 3rd=B D) 1st=A, 2nd=C, 3rd=B E) 1st=C, 2nd=B, 3rd=A
Robbo Ltd has decided to invest in a new piece of machinery. Research has indicated three possibilities, and their related cash flows are highlighted below: 000's 000's 000's 115 Machine Cost 120 134 Net Cash Inflows Year 1 Year 2 Yoar 3 Year 4 The cost of capital is considered to be 10% and the relevant discount rates are as follows: Year 0 1.000 Year 1 Year 2 0.826 Year 3 0.909 0.751 0.621 Year 4 0.683 Year 5Step by Step Solution
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