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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. Years of Service Initial Cost $15,000 $6,000 Cash Inflows per year $9,000 $14,000 Machine B The discount rate is 8%. What is the net present value for each machine? Machine A = Number Machine B = Number
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