Question
A company is thinking whether to buy a new machine or build a new machine itself in the factory. The following information is available about the two projects:
A company is thinking whether to buy a new machine or 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?
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