Question
Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows: Machine A Machine B Investment $108,100 $155,400 Estimated
Aliara Corporation is considering purchasing one of two new machines. Estimates for each machine are as follows: Machine A Machine B Investment $108,100 $155,400 Estimated life 8 years 8 years Estimated annual cash inflows $26,600 $39,800 Estimated annual cash outflows $6,200 $9,500 Salvage value for each machine is estimated to be zero. Click here to view PV table. Calculate the net present value of each project assuming a 6% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to 0 decimal places, e.g. 125.) Net Present Value Machine A $ Machine B $ Which project should the company choose?
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