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Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Machine C3 Cash Flows ($ thousands) Ce C1
Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Machine C3 Cash Flows ($ thousands) Ce C1 C2 -110 +120 +131 -80 +90 +80 +70 The real opportunity cost of capital is 10%. a. Calculate the NPV of each machine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.) Machine NPV A 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.) Machine Cash Flow
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