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Machines A and B are mutually exclusive and are expected to produce the following real cash flows: C Cash Flow (thousandu) Machine CO C C2

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Machines A and B are mutually exclusive and are expected to produce the following real cash flows: C Cash Flow (thousandu) Machine CO C C2 -109 +119 +130 -129 +119 +130 142 The real opportunity cost of capital is 8%. a. Calculate the NPV of each mochine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.) NPV Machine A B b. Calculate the equivalent annual cash flow from each machine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.) ok Cash Flow cos Machine B c. Which machine should you buy? Machine A Machine B 11 Next >

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