Q24) X Ltd is planning to increase its present capacity and is considering the purchase of newmachines. Machine X and Yare available at a price of Rs. 90,000 and Rs.1,00,000 respectively.The company can buy either of two machines. The cut-off rate required by the company is 20%.Cash flows have been estimated as follows:Year1234Machine A 42,00040,00040,00032,00026,000Machine B 26,00014,00026,00048,00030,000Present value of Re. 1 at the discount rate of 20%p.a. for the first 5 years is0.833,0.694.0.579,0.482,and 0.402 respectively. Which of the two machines should the companybuy and why?
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your house or the next few just in time and you are not a bad dad is in my life with you I was going
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