(a(i))[3]
Calculate the net present value (NPV) for the new machine.
(a(ii))[3]
Calculate the net present value (NPV) for the upgraded machine.
(b(i))[3]
Calculate, to two decimal places, the internal rate of return (IRR) for the new machine.
(b(ii))[3]
Calculate, to two decimal places, the internal rate of return (IRR) for the upgraded machine.
(c)[7]
Advise the directors which machine they ought to choose if Product P were to be made. Justify your answer.
(d)[6]
Assess how the directors’ decision to make Product P is affected if these two issues are dealt with. Support your answer with calculations.