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Equivalent annual cost. Your company decided to purchase a machine. Now, the business needs to decide which model to purchase. Two different models, with different

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Equivalent annual cost. Your company decided to purchase a machine. Now, the business needs to decide which model to purchase. Two different models, with different characteristics will meet the needs of your business, The purchase cost of machine A is $200,000. The operating cost for the machine (before tat) is $75,000 per year. The machine's expected unetul life is 8 years with no salvage value at the end of its useful life. The purchase cost of machine Bit $100,000. The operating cost for the machine (before ta is $60,000 per year. The machine's expected useful life is 6 years with no salvage value at the end of its useful lite Neither machine will impact revenue. The net working capital needs of both machines are identical, $10,000. The required return for the project is 10%. The CCA rate for the machines is 20%. The company's marginal income tax rate is 35% Calculate the NPV for each machine using the six step approach (nearest dollar without dollar sign (5) or comma eg. 15000) Negative cath flow is -15000) What is the NPV for machine B

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