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Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands) Machine Co C1
Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands) Machine Co C1 C2 C3 A -101 +111 +122 B -121 +111 +122 +134 The real opportunity cost of capital is 11%. a. Calculate the NPV of each machine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dolla amount.) Machine NPV A $ B $ 98,018 235,869 b. Calculate the equivalent annual cash flow from each machine. (Enter your answers in dollars not in thousands. Round your answers the nearest whole dollar amount.) Machine A Cash Flow B
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