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There is a company named magic Tiber and steel formed in 1 9 9 9 in Caloundra on the Queensland sunshine coast Australia, located about
There is a company named magic Tiber and steel formed in in Caloundra on the Queensland sunshine coast Australia, located about kilometres, north of the state capital of Brisbane.
The big issue is the move into the steel business had proved relatively successful due to magics state of the art machinery, the older timer machines is showing its age and become more troublesome, the larger finisher.
However, the owner was wondering whether the company should invest weather go for a new one, however that would have cost him.
After years, the magic would sell delta for $
Due the advance feature between the old machine and the new one, the owner would save on both labour and electricity.
Should magic go ahead with the new investment in the machinery?
If you have made assumptions as part of the case analysis, please include them in the report.
Using NPV analysis, should Magic Timber and Steel Magic purchase the new Delta finishing machine? What other quantitative andor qualitative factors see below need to be taken into consideration? Sensitivity analysis eg different discount rates, different selling prices, change in maintenance cost You may assume discount rate as and tax rate as EXHIBIT : MAGIC REVENUE AND NET PROFIT
Actual Revenue and Net Profit for Magic in dollars:
table
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