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Analyse the effect of inflation on both machines. For simplicity, assume no other cash flows apart from the sales revenues and operating costs are affected.
Analyse the effect of inflation on both machines. For simplicity, assume no other cash flows apart from the sales revenues and operating costs are affected. For both chip crushers, the sales revenues are expected to increase by the 5 percent rate beginning after Year 1. However, the annual operating costs are expected to increase by only 3 percent annually.
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