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4 Machines A and B are mutually exclusive and are expected to produce the following real cash flows: C3 0.66 points Cash Flows ($ thousands)

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4 Machines A and B are mutually exclusive and are expected to produce the following real cash flows: C3 0.66 points Cash Flows ($ thousands) Machine Ci C2 A -104 +114 +125 B -124 +114 +125 +137 The real opportunity cost of capital is 8%. a. Calculate the NPV of each machine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. Machine NPV A 109 X B $ 197 X b. Calculate the equivalent annual cash flow from each machine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.) X Answer is complete but not entirely correct. Machine Cash Flow A $ 135 x B $ 77 X c. Which machine should you buy? Machine A X Machine B

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