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Consider the following two machines a company can purchase. The following table provides the costs of the machines and the annual cash flows obtained from
Consider the following two machines a company can purchase. The following table provides the costs of the machines and the annual cash flows obtained from the machines over their lifetimes. Initial Cost ||$15,000 $7,000 Machine A Machine B Cash Inflows per year $10,000 $12,000 Years of Service 7 The discount rate is 4%. What is the net present value for each machine? Machine A = Number Machine B = Number Click "Verify" to proceed to the next part of the
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