Question

A company is thinking whether to buy a new machine or

Q: Answer-A company is thinking whether to buy a new machine or build a new machine itself in the factory. The...

We should the project with higher NPV. Higher NPV helps in maximizing the wealth of shareholders.

build a new machine itself in the factory. The following information is available about the two projects: A. NPV of buying new machine = Rs. 23,000 B. NPV of building new machine = Rs. 61,000 The company should accept which of these two projects?

A Only A

B Either A or B

C Neither A or B

D Only B

E Can not be determined

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A company is thinking whether to buy a new machine or

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