问题描述：
英语翻译
Queensway Pte Ltd is considering investing in a machine in order to increase its profitability Two machines A and B are under consideration
The estimated annual profit increase (in$000) after the calculation of traight-line depreciation over the life of the machinees are follows:
Machine
A B
Year1 205 130
yera2 205 130
year3 200 180
year4 170 230
year5 80 220
Both machines have an initial cost of $700.000 The residual value of Machine A is expected to be $800,000 and that of Machine B $200,000
The chairman of the company has stated that,for the foreseeable future the liquidity situation of the company needs to be carefully monitored.
You are required to:
a State based on the above figures only which machine would be preferred on financial grounds giving reasons for your answer
b Calculate the Accounting Rate of Return for each machine using the average capital invested
c If the company's costs of capital is 10% per annum calculate the net present value of each machine
Discount factors 10%
year1 0.909
year2 0.826
year3 0.751
year4 0.683
year5 0.621
d On the basis of the answer to (a)(b)(c)advise with reasons as to which machineshould be purchased
E Define internal rate of return (IRR) and state one way in which it can be arrived at
不求翻译 不求精确 但求对付 100分
Queensway Pte Ltd is considering investing in a machine in order to increase its profitability Two machines A and B are under consideration
The estimated annual profit increase (in$000) after the calculation of traight-line depreciation over the life of the machinees are follows:
Machine
A B
Year1 205 130
yera2 205 130
year3 200 180
year4 170 230
year5 80 220
Both machines have an initial cost of $700.000 The residual value of Machine A is expected to be $800,000 and that of Machine B $200,000
The chairman of the company has stated that,for the foreseeable future the liquidity situation of the company needs to be carefully monitored.
You are required to:
a State based on the above figures only which machine would be preferred on financial grounds giving reasons for your answer
b Calculate the Accounting Rate of Return for each machine using the average capital invested
c If the company's costs of capital is 10% per annum calculate the net present value of each machine
Discount factors 10%
year1 0.909
year2 0.826
year3 0.751
year4 0.683
year5 0.621
d On the basis of the answer to (a)(b)(c)advise with reasons as to which machineshould be purchased
E Define internal rate of return (IRR) and state one way in which it can be arrived at
不求翻译 不求精确 但求对付 100分
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