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Relliance Ltd., is considering the purchase of one of the two machines. As the basis for selection, the following data were developed. The expected rate

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Relliance Ltd., is considering the purchase of one of the two machines. As the basis for selection, the following data were developed. The expected rate of return for the company is 16%. Both the machines have a life of five years and will not have any salvage value. The company is in the 40% tax bracket. You are required to calculate NPV and PV index. Suggest most profitable machine

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