Machines A and B are mutually exclusive and are expected to produce the following real cash flows:

Cash Flows ($ thousands)
Machine	C0	C1	C2	C3
A	103	+113	+124
B	123	+113	+124	+136

The real opportunity cost of capital is 9%. a. Calculate the NPV of each machine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.)

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.)

c. Which machine should you buy?

multiple choice

• Machine A

• Machine B