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problem 2 Problem Two Austin Jack Inc. is considering the following machines. Take WACC 14% for both projects Austin Jack Inc. Mrchine A Machine B
problem 2
Problem Two "Austin Jack Inc." is considering the following machines. Take WACC 14% for both projects "Austin Jack Inc." Mrchine A Machine B Cost $500,000 $260,000 Expected Life 6 years 3 years Cash inflow per year $220,000 $200,000 Which of the following statements is true? (Round to the nearest number) O NPV of B exceeds NPV of A by $151,180 O EAA of B exceeds EAA of A by $3,411 O Project A should be selected based on EAA O All of the above O None of the above Step by Step Solution
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