valuing Production tine: Ahmad has a factory thut produces as Agcondition, Ahmad has a friend - Anwarwho was running a similar factory, but he was broten wp, and closed his factory 6 \& ap 2, months ago. Ahmad asked Anwar if he is wistet to rell his production line. Arvwar told Ahmad that he was witiling to sell it for 5750000 - a new production line cost \$1000000. Anwar's production line has been od work for the last year. It needs some repair. A technician told Ahmad thut the machine needs a repair that might cost $150,000. Most of the deffict parts needs to be imported from overseas. If takes one year to operate the line- So Ahad wall receie no incomen until the second Chyefir. . Ahmadestimates that this machige can produce 10c00 jo unit per vear. Each unit cost 1000nis, however can be sold for 3000 , ahmad estimates that the production line can function for 5 vears, after which it can be sold for 5400000 . Ahmad can borrow at 10% What is the fair value of Amwar production line to Doyou think that Ahmad should bey the production line from Anwar, or buy it 2,0936 from the market? Explain valuing Production tine: Ahmad has a factory thut produces as Agcondition, Ahmad has a friend - Anwarwho was running a similar factory, but he was broten wp, and closed his factory 6 \& ap 2, months ago. Ahmad asked Anwar if he is wistet to rell his production line. Arvwar told Ahmad that he was witiling to sell it for 5750000 - a new production line cost \$1000000. Anwar's production line has been od work for the last year. It needs some repair. A technician told Ahmad thut the machine needs a repair that might cost $150,000. Most of the deffict parts needs to be imported from overseas. If takes one year to operate the line- So Ahad wall receie no incomen until the second Chyefir. . Ahmadestimates that this machige can produce 10c00 jo unit per vear. Each unit cost 1000nis, however can be sold for 3000 , ahmad estimates that the production line can function for 5 vears, after which it can be sold for 5400000 . Ahmad can borrow at 10% What is the fair value of Amwar production line to Doyou think that Ahmad should bey the production line from Anwar, or buy it 2,0936 from the market? Explain