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S.No Particulars Old Machine Rs New Machine Rs
S.No Particulars Old Machine Rs New Machine Rs
Rs.18,00,000 0.6
Rs.13,00,000 0.5 Rs.15,00,000 0.4
The machine costs Rs.12, 00,000 with an estimated life of 2 years. The cost of capital of the firm
is 12%.make your recommendation through the Decision Tree method.
3. Outline the financial management technique of capital investment in fixed assets.
4. What are the steps in the capital budgeting process of a firm explain?