4. The OPM Company is planning to, purchase a machine. A choice is to be made out of two machine A and B, the details of which are given below. Particular Machine A Machine B Capital Cost Net Cash-flow after charging tax Average annual income 90,000 48,000 48,000 90,000 37,500 37,500 The expected serviceable life of machine A is 2 years and B3 years. Sales expected to continue at the above rates for the full serviceable life of machine. The costs relate to annual expenditure to be incurred as a result o machines. Which is the most profitable investment by applying ARR? Return on

4. The OPM Company is planning to, purchase a machine. A choice is to be made out of two machine A and B, the details of which are given below. Particular Machine A Machine B Capital Cost Net Cash-flow after charging tax Average annual income 90,000 48,000 48,000 90,000 37,500 37,500 The expected serviceable life of machine A is 2 years and B3 years. Sales expected to continue at the above rates for the full serviceable life of machine. The costs relate to annual expenditure to be incurred as a result o machines. Which is the most profitable investment by applying ARR? Return on

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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