D B Capital Budgeting Assignment Orange Corp. nas to replace a machine for its assembly line. It is considering three machines with airrerent costs and userule lives. Select the best option for the company based on the NPV and IRR methods? Cost of Capital 8% Orange Corp. should pick the following machine: Machine A Investment $ (500,000) Machine B Investment $ (350,000) Cash Flow $ 100,000 Project Life 12 years Cash Flow $ Project Life 95,000 10 years Machine C Investment $ Cash Flow Project Life $ (250,000) 98,000 7 years Year CF Year CF Year CF 0 1 2 3 4 25 26 27 28 NPV NPV NPV 29 IRR IRR IRR 30 31 If the projects are independent Accept Yes/No Accept Yes/No Accept Yes/No 32 If the projects are mutually exclusive Accept Yes/No Accept Yes/No Accept Yes/No 33 34 35 36