1. A company is considering whether to purchase a new machine. Machines A and B are available for RM92,000 each. Earnings after taxation are as follows: Years Machine A (RM) Machine B (RM) 1 34,000 18,000 2 32,000 24,000 3 40,000 32,000 4 24,000 48,000 5 16,000 32,000 By using a discount rate of 10%, you are required to evaluate the two alternatives using the following: a. Payback method, and b. Net present value method. a.Payback method, and b. Net present value method.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
1. A company is considering whether to purchase a new machine. Machines A and B are available for RM92,000 each. Earnings after
Years Machine A (RM) Machine B (RM)
1 34,000 18,000
2 32,000 24,000
3 40,000 32,000
4 24,000 48,000
5 16,000 32,000
By using a discount rate of 10%, you are required to evaluate the two alternatives using the following: a. Payback method, and b.
a.Payback method, and
b. Net present value method.
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