Question
achines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands) Machine C0 C1 C2
achines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands) Machine C0 C1 C2 C3 A 109 +119 +130 B 129 +119 +130 +142 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.)
A
B
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.)
A
B
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International Finance For Non Financial Managers
Authors: Dora Hancock
1st Edition
0749480017, 9780749480011
