Question
Show how to calculated using an HP12c Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash
Show how to calculated using an HP12c Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands) Machine C0 C1 C2 C3 A 102 +112 +123 B 122 +112 +123 +135 The real opportunity cost of capital is 12%. a. Calculate the NPV of 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.) Machine NPV A $ B $ 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.) Machine Cash Flow A $ B $ c. Which machine should you buy? Machine A Machine B
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