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Three types of machine are being considered in your operations with the following cash flow pattern: MACHINE A MACHINE B MACHINE C Investment P1,000,000 600,000
Three types of machine are being considered in your operations with the following cash flow pattern:
MACHINE A MACHINE B MACHINE C
Investment P1,000,000 600,000 300,000
Life 8 years 4 years 2 years
Salvage value 80,000 40,000 20,000
Annual costs 300,000 (1st 4 years) 250,000 150,000
400,000 (last 4 years)
Annual revenues 600,000 (1st 5 years) 500,000 400,000
500,000 (last 3 years)
Interest rate/year 15%
Will you invest in this machine? If so, which type? Use PW method.
Pls Show solution Thank you. No excel
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