Question
Suppose you are contemplating to undertake the following two machines, Machine A and Machine B. The cashflows associated with each machine are as follows- Machine
Suppose you are contemplating to undertake the following two machines, Machine A and Machine B. The cashflows associated with each machine are as follows-
|
| Machine A | Machine B |
| Year | CF | CF |
| 0 | -10,00,000 | -117,000 |
| 1 | 1,00,000 | 40,000 |
| 2 | 3,50,000 | 35,000 |
| 3 | 2,00,000 | 25,000 |
| 4 | 4,50,000 | 20,000 |
| 5 | 6,50,000 | 40,000 |
Suppose you require 12 percent return on your investment.
Calculate:
(a) Discounted Payback Period of Machine A and B
(b) Net Present Value (NPV) of Machine A and B
(d) Which Machine would you recommend? Why?
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Finance For Food Towards New Agricultural And Rural Finance
Authors: Doris Köhn
1st Edition
3662568659, 978-3662568651
