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Consider the following two mutually exclusive investment alternatives: Net Cash Flow Machine A 1000 900 80) 700 Machine B 2000 2500 800+200 End of vear
Consider the following two mutually exclusive investment alternatives: Net Cash Flow Machine A 1000 900 80) 700 Machine B 2000 2500 800+200 End of vear Suppose that your firm needs either machine for only 2 years. The net proceeds from the sale of machine B is estimated to be $200. What should be the required net proceeds from the sale of machine A so that both machines could be considered economically indifferent at an interest rate of 10%
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