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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

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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 Potento achine Investiti Present value of net cash flows (excluding initial investment and salvago) $ 20,002 $26.900 Present value of net cash flow from salvage value 3.000 42 Initial Investment (20.900) (20,000) 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. 5 Present value of net cash flows Present value of net cash flow from salvage value Total Initial Investment Net present value A 20.80275 3.000 23,802 (20.900) 26.900 642 27.542 (20.900)

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