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Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands) C +110 +110 Machine
Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands) C +110 +110 Machine A B Co -100 -120 C +121 +121 C3 The real opportunity cost of capital is 10%. +133 a. Calculate the NPV of each machine. b. Calculate the equivalent annual cash flow from each machine. c. Which machine should you buy? Machine A B Complete this question by entering your answers in the tabs below. Required A Required B Required C Cash Flow Calculate the equivalent annual cash flow from each machine. Note: Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.
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