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Rollerblade, a maker of skating gear, is evaluating two alternative presses. Press A costs $ 8 8 , 0 0 0 , has a 4

Rollerblade, a maker of skating gear, is evaluating two alternative presses. Press A costs $88,000, has a 4-year life, and is expected to generate annual cash inflows of $30,100 in each of the 4 years. Press B costs $120,000, has an 8-year life, and is expected to generate annual cash inflows of $24,800 in each of 8 years. The cost of replacement for Press A is $94,000, and the replacement press will generate cash inflows of $30,100 for another 4 years. Rollerblade uses a 11% cost of capital. Which press should be chosen?

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