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貨幣條件的 Aftertax cost of capital:稅后資本成本 Question 3 (Abstract) Using the equivalent annual cost method, calculate whether Cavic Ltd should replace its fleet after one year, two years, or three years. (12 marks) Discuss the causes of capital rationing for investment purposes. (4 marks) EAC: equivalent annual cost每年成本等值 Replace:11頁。資金配額 QUESTION 1 Paragraph 1 Duo Co to increase production capacity to meet increasing demand for an existing product, ‘Quago’,which is used in food processing. A new machine, with a useful lite of four years and a maximum output of 600,000kg of Quago per year, could be bought for $800,000, payable immediately. The scrap value of the machine after four years would be $30,000. Forecast demand and production of Quago over the four years is as follows: Year 1 2 3 4 Demand(kg) 14 million 15 million 16 million 17 million Increase production capacity: 增加生產(chǎn)能力 Meet increasing demand: 滿足日益增長的需求 Machine:機器 Useful life:使