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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?

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Anonymous

∙ 11y ago
Updated: 11/5/2022

Equipment A NPV = 75000 - 120000 = 45000

Equipment B NPV = 50000 - 84000 = 34000

Based on NPV Equipment A should be selected

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Wiki User

∙ 11y ago
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