- Using NPV analysis, should Magic Timber and Steel (Magic) purchase the new Delta finishing machine?
- What other quantitative and/or qualitative factors need to be taken in to consideration for the investment decision?
- Sensitivity analysis (e.g. different discount rate, different selling price, change in maintenance cost)
- What would be your recommendation(s)?
- You may assume discount rate as 11% and tax rate at 30%.
What are the requirements?
- A typed report of not more than 4 pages (excluding appendix).
- You may consider including relevant graphs, charts, illustration, tables and reference, if any applicable in the appendix section.