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QUESTION 6 JBM Associates has additional cash available for investment. One of the production machines needs to be replaced, and management is considering two options

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QUESTION 6 JBM Associates has additional cash available for investment. One of the production machines needs to be replaced, and management is considering two options Both options require a similar initial outlay of $50,000 and have a useful life of 8 years. However, one of the machines will generate $30.000 annually in positive after-tax cash flows and would have an after-tax residual value of $10,000. The other option will generate $25,000 annually in positive after-tax cash flows and would have an after-tax residual value of $11,000. Using a discount rate of 9%, what is the net present value of each option? Which option is the most attractive? TTT Arial 3 (120) T.E.E

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