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Machine B is expected to produce the following real cash flows: Machine Cash Flows ($ thousands) C2 -133 -123 +134 +146 Machine C was purchased

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Machine B is expected to produce the following real cash flows: Machine Cash Flows ($ thousands) C2 -133 -123 +134 +146 Machine C was purchased five years ago for $200,000 and produces an annual real cash flow of $80,000. It has no salvage value but is expected to last another five years. The company can replace machine with machine Bether now or at the end of five years The real opportunity cost of capital is 9%, When should the company replace machine C? Replace now Replace after 5 years

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