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In the following, a choice must be made to replace an old machine with a new machine now , or at the end of the

In the following, a choice must be made to replace an old machine with a new machine now, or at the end of the old machines physical life. The required rate of return is 10%.

Old Machine

Current Value: $100

Cash Flow 1: $60

Cash Flow 2: $90

Sn: $60

New Machine

Current Value: $200

Cash Flow 1: $90

Cash Flow 2: $90

Cash Flow 3: $90

Cash Flow 4: $90

Sn: $10

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