Please do not give solution in image format thanku 1. A company is considering whether to purchase a new machine. MachinesA and B are available for RM92,000 each. Earnings after taxation are asfollows:Year12345Machine A(RM)34,00032,00040,00024,00016,000Machine B(RM)18,00024,00032,00048,00032,000By using a discount rate of 10%, you are required to evaluate the twoalternatives using the following:a. Payback method, andb. Net present value method.

Net present value and internal rate of return are the modern method of capital budgeting that is…

Answered: 1. A company is considering whether to…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A car dealer carries out the following calculations. What is the annual percentage rate? Lis price: $5,227.00 , Options: $1,625.00, Destination charges: $200.00 , Subtotal: $7,052.00, Tax: $431.58 Less trade in: $2,932.00, Amount to be financed: $4,691.03, 10% interest for 48 months: $1,501.63, Total: $6,192.66, Monthly payment: $129.00 Please round your answer to one decimal place(tenth place). Enter only the number without % sign.
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