(Answered) The manager of abc firm is contemplating in investing a new

Management Studies

The manager of ABC firm is contemplating in investing a new machine that will cost 250,000 AED and has useful life of four years. The machine will yield (year-end) cost reductions of about 60,000 AED in year one, 70,000 AED in year two, 80,000 in years three and four

What is the present value of the cost saving of the machine if the discount rate is 7%/?

Should the manager invest in this new machine?

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Business Management, Management Studies

Category:- Business Management
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