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Co. X has gathered the following estimates: Machine A Machine B Cost $600,000 $600,000 Life 5 yrs 5 yrs Net Cash Inflow: Yr 1 i$100,000

Co. X has gathered the following estimates: Machine A Machine B Cost $600,000 $600,000 Life 5 yrs 5 yrs Net Cash Inflow: Yr 1 i$100,000 $500,000 Yr 2 $200,000 $400,000 Yr 3 $300,000 $300,000 Yr 4 $400,000 $200,000 Yr 5 $500,000 $100,000 Co. X uses the net present value method to evaluate capital expenditures. Which of the following two machines has the higher net present value? A. Machine A B. Machine B C. they are the same D. Cannot be determined from the information provided

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