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A company is considering the purchase of either machine A or machine B. And the interest rate is 10%. The following table shows the cash

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A company is considering the purchase of either machine A or machine B. And the interest rate is 10%. The following table shows the cash flows of both machines. a) Which alternative should the company choose if it adopts an interest rate of 10% ? Use present worth (PW) method to evaluate the two machines and show your calculations in the space given below. ( 8 marks) Cash flow diagram for Machine A: PW of machine A

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