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The management of Maxim limited intends to replace its obsolete machine. Two machines from different manufacturers are being assessed. The machines will cost the same
The management of Maxim limited intends to replace its obsolete machine. Two machines from different manufacturers are being assessed. The machines will cost the same amount but will generate different cash flows over their useful livesof 6 years. The company's cost of capital is 12%. Required. a) Which of the two machines would be preferred if quantitative assessment isbased on - Discounted Payback period - Net present value - Internal rate of return b) What other qualitative information should be considered in selection of thetwo machine
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