the production manager gave you the following information, cost of new machine R650 000 ...

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Accounting

the production manager gave you the following information,

cost of new machine R650 000

installation costs R80 000

useful life 4 years,

the profit before depreciation and tax

Year 1

R180,000

Year 2

R195,000

year 3

R210,000

Year 4

R235,000

the cost of capital is 10%

Depreciation is straight line,

tax rate is 30%.

calculate annual cash flow and NPV

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