The directors of Advanced plc. are currently considering an investment in new production…

The directors of Advanced plc. are currently considering an investment in new production machinery to replace existing machinery. The new machinery would produce goods more efficiently, leading to increased sales volume. The investment required will be £1,150,000 payable at the start of the project. The alternative course of action would be to continue using the existing machinery for a further five years, at the end of which time it would have to be replaced. The following forecasts of sales and production volumes have been made:

Sales (in units)
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