A furm has a market capitalization of $2 million, market value of interest-bearing debt of $1 million, book value of interest-bearing debt of $500,000 and cash of $100,000. What is the enterprise value? A. $2.5 million B. $2.9 million c. $3.0 million D. $3.5 million E. $3.6 million Answer: Robinhood Factories has to deade which of two machines to purchase. The company requires a 14% rate of return and uses straight-line depreciation to a jero-book value. Machine A has a cost of $290,000, amual operating costs of $8,000, and a 3 -year life. Machine B costs $180,000, has amual operating costs of $12,000, and has a 2-year life. Whichever machine is purchased will be replaced at the end of its useful life. Which machine should Jerry Widget's purchase and why? (Round your answer to whole dollars.) A. Machine A; because it will save the company about $8,600 a year B. Machine A; because it will save the company about $132,912 a year c. Machine B; because it will save the company about $200,000a year D. Machine B; because it will save the company about $11,600 a year E. Machine B; because its equivalent amual cost is \$199,759