12.16 Coconut Plantations Pty Lid is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built

Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed. Two machines are being investigated.

Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed. Two machines are being investigated.

Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed. Two machines are being investigated.

Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed. Two machines are being investigated.

Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed. Two machines are being investigated.

Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed. Two machines are being investigated.

Coconut Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed. Two machines are being investigated.

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12.16 Coconut Plantations Pty Lid is contemplating acquiring a new machine to beused for a relatively short period until its new factory is built with computerisedequipment installed . Two machines are being investigatedMachineCost ( S )7500020 000Cost savings – Year500022500Cost savings – Year 2800030 000Cost savings – Year 32300037500Salvage value – end Year 33450052500Calculate the ARR of each machine . Which machine would you recommend ?

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