KLM Enterprises is considering the purchase of one of two machines. The company's cost of...
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KLM Enterprises is considering the purchase of one of two machines. The company's cost of capital is 13% and the tax rate is 30%. Details are given below:
Particulars | Machine G | Machine H |
Cost of machine | 21,00,000 | 25,00,000 |
Expected life | 6 years | 6 years |
Annual Income (before Tax & Depreciation) | 6,50,000 | 7,75,000 |
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