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A company is deciding whether to buy a machine. The machine costs GH¢28,000 and is expected...

A company is deciding whether to buy a machine. The machine costs GH¢28,000 and is expected to generate a net cash flow of GH¢10,000 each year during a productive life of 3 years. If the cost of capital is 12%:
(a) Draw up a discounted cash flow table and hence calculate the Net Present Value of the machine.
(b) Advice the company in the light of the situation.
Math   Statistics-And-Probability   
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