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help The Lesselq Company has an opportunity to invest in one of two mutually exclusive machines that will produce a product the company will netd
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The Lesselq Company has an opportunity to invest in one of two mutually exclusive machines that will produce a product the company will netd for the next 8 . years. Machine A has an after-tax cost of $9.3 milion but will provide after-tax inflows of 54.1 million per year for 4 years. If Machine A were replaced, its after: tax cost would be $11.1 milion due to inflation and its after-tax cash inflows would increase to $4.6 million due to production efficiencies. Machine 6 has an after-tax cost of $14.6 milion and will provide after-tax inflows of $4.5 million per year for 8 years. If the wACC is 9%, which machine should be acquired? Explain. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimel places. Machine 2. is the better project and will increase the company's value by $ (8) milions, rather than the s (8) mirions created by Machine Step by Step Solution
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