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Company needs to decide between two machines. Machine C costs 10,000 and produce after tax cash flows of 4,000 per year for 3 years. No

Company needs to decide between two machines.

Machine C costs 10,000 and produce after tax cash flows of 4,000 per year for 3 years. No salvage.

Machine D costs 14,000 and produce after tax cash flows of 3,000 per year for 7 years. No salvage.

Discount rate is 8%

Which machine would you recommend?

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