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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 replace machine C? 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. \begin{tabular}{l} Input area: \\ \hline \begin{tabular}{l} NPV \\ OAC \\ Replace \end{tabular} \\ \hline \end{tabular} Alt Text A screenshot of a computer For an answer to be graded as correct, you must use an Excel formula: 1. Begin each formula with an = sign. 2. Reference cells, instead of entering values. Example: =B
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