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Once again, data is presented correctly as shown. For Machine B, cash inflow and initial costs have not been interchanged, this is how they are
Once again, data is presented correctly as shown. For Machine B, cash inflow and initial costs have not been interchanged, this is how they are presented for the question. Please show calculations
b.) Given that the net present value of the costs of the Diesel tractor are (A) and of the Gasoline tractor are (B), what are the equivalent annual costs for each machine?
c.) Given that the equivalent annual cost of the Diesel tractor is (AA) and of the Gasoline tractor if (BB), which tractor should the company buy?
Diesel OR Gasoline ?
Question 1 3 points Consider the following two machines a company can purchase. The following table provides the costs of the machines and the annual cash flows obtained from the machines over their lifetimes. Machine A Machine B Initial Cost $16,000 $5,000 The discount rate is 6%. What is the net present value for each machine? Machine A = Number Machine B = Cash Inflows per year $6,000 $15,000 Number Click "Verify" to proceed to the next part of the question. This question has 3 parts (i.e., you will need to click "verify" 3 times) Years of ServiceStep by Step Solution
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