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Delta Industries is considering an investment in a new machine. The machine costs GBP 75,000...

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Accounting

Delta Industries is considering an investment in a new machine. The machine costs GBP 75,000 and is expected to generate the following cash inflows:

Year

Cash Flows

Initial Investment

(75,000)

1

20,000

2

25,000

3

30,000

4

35,000

Requirements: a. Determine the payback period for the machine investment. b. Calculate the NPV if the discount rate is 9%. c. Should Delta Industries invest in the new machine based on the NPV and payback period analyses?

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