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Equipment A has a cost of Rs75000 and net cash flow of Rs20000 per year for six years A substitute equipment B would cost Rs50000 and generate net cash flow of Rs14000 per year for six years?
Updated: 11/5/2022
Wiki User
∙ 9y agoBest Answer
Equipment A NPV = 75000 - 120000 = 45000
Equipment B NPV = 50000 - 84000 = 34000
Based on NPV Equipment A should be selected
Wiki User
∙ 9y agoThis answer is:
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Earn +20 ptsQ: Equipment A has a cost of Rs75000 and net cash flow of Rs20000 per year for six years A substitute equipment B would cost Rs50000 and generate net cash flow of Rs14000 per year for six years?
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