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Show work using a financial calculator please. not excel 6. The Lopez Company has the opportunity to invest in one of two mutually exclusive machines

Show work using a financial calculator please. not excel image text in transcribed
6. The Lopez Company has the opportunity to invest in one of two mutually exclusive machines that will produce a product it will need for the foreseeable future. Machine X costs $15 million but realizes after-tax inflows of $7 million per year for 5 years. After 5 years, the machine must be replaced. Machine Y costs $25 million and realizes after-tax inflows of $11 million per year for 10 years, after which it must be replaced. Assume that the machine prices are not expected to rise because inflation will be offset by cheaper components used in the machines. The cost of capital is 9%. By how much would the value of the company increase if it accepted the better machine? Which is the better' machine? (12)

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