Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the question regarding the equivalent annual cash flows. Consider the following two machines a company can purchase. The following table provides the costs of

image text in transcribedimage text in transcribed

Answer the question regarding the equivalent annual cash flows.

Consider the following two machines a company can purchase. The following table provides the costs of the machi and the annual cash flows obtained from the machines over their lifetimes. Years of Service Initial Cost $19,000 $8,000 Machine A Machine B Cash Intlows per year $12,000 $13,000 6 4 The discount rate is 3%. What is the net present value for each machine? Machine A = 46006.30 Correct responsor 46,006.32 Machine B = 40322.28 correct responset 40,322.2012 Click "Verity to proceed to the next part of the question. This question has 3 parts (..you will need to click "verity 3 times) Given that Michin Atasan NPV 540,000 3 and Machine Bhasan NPV O 540,322 28 what are the outcash lows for noch machine? Ine A = 46006.30 et response: 46,006.32 Ine B = 40322.28 sect response: 40,322.2812 k "Verity to proceed to the next part of the question s question has 3 parts (i.e., you will need to click "verify 3 times) Given that Machine A has an NPV of $46,006,3 and Machine B has an NPV of $40,322.28, what are the equivalent annual cash fiows for each machine? EAC A = Number EACB Number Click "Vority to proceed to the next part of the

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Options Trading QuickStart Guide The Simplified Beginners Guide To Options Trading

Authors: Clydebank Finance

2nd Edition

1945051051, 978-1945051050

More Books

Students also viewed these Finance questions