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Mike Mulligan, CEO of Mulligan Excavation Inc, needs to replace Mary Anne, his old steam-driven shovel. Mike is looking at two hydraulic excavators: a Caterpillar

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Mike Mulligan, CEO of Mulligan Excavation Inc, needs to replace Mary Anne, his old steam-driven shovel. Mike is looking at two hydraulic excavators: a Caterpillar and a Zoomlion. The Caterpillar, because of its superior quality, is expected to last one year longer than the Zoomlion, but it also costs more. Mike has produced estimates (in the table below) of the purchase price of each excavator and the associated after-tax cash flows that he expects to earn. Mike's cost of capital is 10%. Using the replacement chain approach, answer. the following questions to calculate the NPV of each chain and decide which excavator Mike should choose. Cash flows for Hydraulic Excavators Ru Mndal What is the NPV of the Zoomlion chain? (Round your answer to two decimal places.)

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