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Please show work Please Do NOT round calculations Thank you Machines A and a are mutually exclusive and are expected to produce the following real

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Please show work

Please Do NOT round calculations

Thank you

image text in transcribed

Machines A and a are mutually exclusive and are expected to produce the following real cash flows: Cash Flows (S thousands) Machine A B co -102 -122 +112 +112 +123 +123 03 +136 The real opportunity cost ot capital IS 12%. a. Calculate the NPV ot each machine. (Do not round intermediate calculations. Enter your answers in dollars not in thousands, e.g. 123,456. Round your answers to the nearest whole dollar amount.) b. Calculate the equivalent annual cash flow from each machine. (Do not round intermediate calculations. Enter your answers in dollars not in thousands, e.g. 123,456. Round your answers to the nearest whole dollar amount.) Cash Flow c. Which machine should you buy? O Machine A O Machine B

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