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7 A company is considering two alternative machines with different net cash flows and salvage values. Present value amounts are calculated using Excel and
7 A company is considering two alternative machines with different net cash flows and salvage values. Present value amounts are calculated using Excel and the results follow. Potential Machine Investments. Present value of net cash flows (excluding initial investment and salvage) Present value of net cash flow from salvage value Initial investment $ 21,202 3,400 (21,300) $ 22,100 682 (21,300) 800.56.17 a. Compute the net present value of each machine A and B. b. If the company can choose only one machine, which will it choose on the basis of net present value? Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each machine A and B. Present value of net cash flows Present value of net cash flow from salvage value Total A Initial investment Net present valun 0 Required A Required B >
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