Jeremy limited wishes to expand its output by purchasing a new machine worth ksh. 170000...
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Jeremy limited wishes to expand its output by purchasing a new machine worth ksh. 170000 and installation cost are estimated at ksh 40000. In the 4th year ,this machine will call for an overhaul to cost ksh.80000. It's expected inflows are:
Year 1 . ksh.60000
Year 2. Ksh.72650
Year3. Ksh.35720
Year4. Ksh.48510
Year5. Ksh.91630
Year6. Ksh.83715
This company can raise finance to purchase machine at 12% interest rate.
require compute NPV and Advice management accordingly
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