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Your cousin has created a business specialised in 3-D printing of metal spare parts for repair shops. For the purchase of one machine, she is
Your cousin has created a business specialised in 3-D printing of metal spare parts for repair shops. For the purchase of one machine, she is considering two different models (project A and B). You are to assist her in making the best choice. Assume an investment horizon of 6 years and a required rate of return of 10%. Assume no corporate or business tax on purchase, income or resale. No computation is required for the depreciation of the machine. After talking to technical professionals and the marketing manager, you have gathered the following information: (c) Compute operating cash flow and cash flow from assets for both projects over the six (6) years. (6 marks) (d) Compute the Net Present Value of both project A and B
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