Writen Response Question 6B - Excel Kamal Vaseer KV X File Home Insert Page Layout Formulas Data Review View Help Power Pivot Tell me what you want to do Share 017 X V E F G H K L M N O P R T U W x Y Wiseman Industries has details of three machines that could fulfil the company's future production plans. Only one of these would be purchased. Depreciation is written off on the straight line method for all three machines. The company's cost of capital is 10%. The initial cost and cash inflows for these machines are as follows. Machine A Machine B Machine C Initial cost -$ 50,000 $50,000 $ 50,000 12 Net cash inflows: 13 Year 1 10,000 $10,000 $ 10,000 14 Year 2 20,000 $10,000 $ 20,000 15 Year 3 20,000 $10,000 $ 18,000 16 Year 4 20,000 $20,000 $ 3,500 17 Year 5 S 10,000 $30,000 3,500 18 Year 6 $30,000 19 Year 7 $30,000 20 21 REQUIRED 23 Advise management which machine to purchase by using the following methods: 24 25 A) Calculate the Net Present Value). 1.5 Marks 26 27 28 B) Profitability Index 1.5 Marks 29 30 31 Profitability Index = Present Value of Net Cash Flows 32 33 34 Initial Investment 35 36 37 C) Which of the three machines should Wiseman industries purchase? 2 Marks 38 39 40 41 Question 6B + D Ready At Accessibility: Investigate + 59% 11 C X ENG 11:32 Cloudy IN 11-05-2022 16