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please use the finance calculator to answer it. thanks 5. Machines A and B have identical capacity. They do the same job but have different
please use the finance calculator to answer it. thanks
5. Machines A and B have identical capacity. They do the same job but have different lives: A lasts 2 years, while B lasts 1 year. The benefits of the machines are the same. Use LCM and EAA methods to determine which one to choose (i.e., the one with the lowest cost). Assume a discount rate of 10%. The cost of these machines at dates 0, 1 and 2 are: Machine t=0 1 2 A -20 -6 -4 B -10 -5 6. Toshiba is deciding whether to continue Selling its products to Walmart. If Toshiba stops selling to Walmart, it can sell a portion of its warehouse equipment. If Toshiba chooses to continue selling to Walmart, it has two alternatives. To be a large seller, Toshiba must install a new inventory system. To be a small seller, a much smaller change in the inventory system is necessary. The cash flow effects of all three alternatives follow (in thousands of dollars). Year 0 Year 1 Years 2-5 Stop Selling to Walmart $3,000 Small Supplier -$6,000 $2,000 $4,000 Large Supplier -$25,000 $5,000 $10,000 Toshiba has a required return of 10% on its investments. Which alternative should Toshiba choose Step by Step Solution
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