and Three alternatives are the planning Horizon. being considered 3 years which is C after A: Machine A can be purchased for 10,000. It generates 4,000 per year and can be sold for 1,000 after 5 years which is the planning Horizon. B: Machine B can be purchased for 5,000. It generates 2,000 per year and can be sold for 500 after 7 years which is the planning Horizon. c: Machine c can be purchased for 6,000. It generates 2500 for 7 per year and can be sold the Least common Multiple planning horizon approach what are the salvage values for choices Consider a cash flow and interest profile as shown: t 0 t 1 t 2 1000 3000 2000 Deposit (Withdrawal) at 10000 nterest rate during year from 0 to 1 is 6%, Interest during the year 1 to 2 is 8%, interest rate during the year 2 to 3 is 12% and from year 3 to 4 is 12%.. All rates are annual rates compounded annually. is the amount in the account at t 4 if nothing is added after t 3