Machine A Machine D cost R100 000 R110 000 Eted economic life 5 years 5 years Eted disposal/residual value R10 000 0 ted

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Machine A Machine D Cost R100 000 R110 000 Eted Economic Life 5 Years 5 Years Eted Disposal Residual Value R10 000 0 Ted 1 (177.6 KiB) Viewed 95 times

Machine A Machine D cost R100 000 R110 000 Eted economic life 5 years 5 years Eted disposal/residual value R10 000 0 ted net cash inflows R R f: Year 1 34 000 33 000 Year 2 27 000 33 000 Year 3 32 000 33 000 Year 4 30 000 33 000 Year 5 26 000 33 000 eciation per year 18 000 22 000 ompany estimates that its cost of capital is 14%. Calculate the payback period for Machine A and B (answers must be expressed in years, months and days) Calculate the accounting rate of retum (on average investment) for Machine A. (answer rounded off to 2 decimal places). Calculate the net present value of each machine (round off amounts to the nearest Rand). O LU 1913