(a(i))[5]
Prepare a statement that shows the net cash flow in each year from Year 0 to Year 3 for model IM3.
(a(ii))[4]
Prepare a statement that shows the net cash flow in each year from Year 0 to Year 3 for model IM8.
(b)[2]
State two advantages of using the net present value (NPV) method in investment appraisal.
(c)[4]
Calculate the NPV for each model of machine.
(d)[7]
Advise the directors which model W Limited should choose. Justify your answer.
(e)[3]
Calculate the change in NPV of IM3 if the additional cost is incurred.