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CMD Industries is to choose between two models of a type of machine in an investment project. Model A costs $50,000 and has cash inflows
CMD Industries is to choose between two models of a type of machine in an investment project. Model A costs $50,000 and has cash inflows of $25,000 per year over a 3-year life. Model B costs $115,000 and has cash inflows of $30,000 per year over a 0-year nie, The cost of capital is 10%. (20 points) a. Which model is better based on the IRR method? b. Which model is better based on the NPV method (without replacement)? c. Which model is better based on the EAA approach? d. Which model is better based on the NPV method (with replacement
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