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Machine B is expected to produce the given real cash flows. Machine C was purchased five years ago for $200,000 and produces an annual real
Machine B is expected to produce the given real cash flows. 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 C with machine B either now or at the end of five years. The real opportunity cost of capital is 10%. What is the NPV of machine B? What is the EAC? When should the company Note: Use cells A8 to B13 from the given information to complete this question. You must use the built-in Excel function to answer this question. EAC should display as a positive number
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