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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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