Your company is considering a new machine purchase which costs 7.5M. It is expected that this investment would provide savings of 1.5M per annum. The discount rate is 12% per annum but is expected to increase to 15% from year 3. What is your recommendation regarding this investment? Provide calculations to justify your recommendation. [10 marks] (b) For the project described in Question 2(a), identify risks that must be considered when conducting this investment appraisal. [5 marks] (c) You are a manager of a civil engineering project and your monitoring indicators suggest that the project is within the budget but it is behind the schedule. Explore the options to bring the project back on the track. Identify the best option and explain in detail how would you implement it. [5 marks]

Question 2 (a) Your company is considering a new machine purchase which costs 7.5M. It is expected that this investment would provide savings of 1.5M per annum. The discount rate is 12% per annum but is expected to increase to 15% from year 3. What is your recommendation regarding this investment? Provide calculations to justify your recommendation. [10 marks] (b) For the project described in Question 2(a), identify risks that must be considered when conducting this investment appraisal. [5 marks] (c) You are a manager of a civil engineering project and your monitoring indicators suggest that the project is within the budget but it is behind the schedule. Explore the options to bring the project back on the track. Identify the best option and explain in detail how would you implement it. [5 marks]