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Suppose your firm is considering two independent projects with the cash flows shown as follows. The required rate of return on projects of both of

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Suppose your firm is considering two independent projects with the cash flows shown as follows. The required rate of return on projects of both of their risk class is 12 percent, and the maximum allowable payback and discounted payback statistic for the projects are two and a half and three years, respectively. Time o 1 2 3 1000 3000 5000 Project A Cash flow Project B Cash flow -5000 10000 5000 5000 5000 The discounted payback for project A is The discounted payback for project B is (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $80 initially, and then $125 per year in maintenance costs. Machine B costs $150 initially, has a life of three years, and requires $100 in annual maintenance costs. Either machine must be replaced at the end of its life with an equivalent machine. The discount rate is 12 percent and the tax rate is zero. Calculate the EAC. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) EAC for machine Ais EAC for machine B is

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