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hi, I would like help in solving this question. AutoSave . OFF 3Chapter 10 - Mini Assignment(1) - Saved to my Mac Home Insert Draw

hi, I would like help in solving this question.

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AutoSave . OFF 3Chapter 10 - Mini Assignment(1) - Saved to my Mac Home Insert Draw Design Layout References Mailings Review View Share Comments Calibri (BO. 11 A A Aa Po 21 T AaBbCcDdEe AaBbCcDdEe AaBbCcD AaBbCcDdEt AaBb AaBbCcDdEe Paste B I U~ ab X, Normal No Spacing Heading 1 Heading 2 Title Subtitle Styles Dictate Sensitivity Pane Question #2: Which Should We Buy? Using the EAC approach, which machine should we choose? Use the table below to plan your cash flows (Bold boxes are where #'s should be). Neither machine will have a differential impact on revenue. No change in NWC is required. The straight line depreciation rate is 20%, the required return is 10% and the tax rate is 40%. There is no salvage values for either machine Machine A |Machine B Initial Cost $150,000 $100,000 Pre-Tax Operating Costs/year |$65,000 $57,500 Expected Life (years) 8 5 Machine A: Cash Flows Year PV 0 1 2 3 4 5 6 7 8 After tax Operating Costs / year Initial Cost Total Cash Flows Depreciation Tax Shield (Benefit) NPV EAC Machine B: Cash Flows Year PV 0 1 2 3 4 5 After tax Operating Costs / year Initial Cost Total Cash Flows Depreciation Tax Shield (Benefit) NPV EAC Page 2 of 2 312 words CE English (United States) Focus E + 140%

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