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the above answers are wrong. Please show steps in excel. Check my work 2 Vandalay Industries is considering the purchase of a new machine for
the above answers are wrong. Please show steps in excel.
Check my work 2 Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,084,000 and wil last for six years. Variable costs are 40 percent of sales, and fixed costs are $225,000 per year. Machine B costs $5,283,000 and will last for nine years. Variable costs for this machine are 35 percent of sales and fixed costs are $160,000 per year. The sales for each machine will be $10.7 million per year. The required return is 11 percent, and the tax rate is 30 percent. Both machines will be depreciated on a straight-line basis. The company plans to replace the machine when it wears out on a perpetual basis. 2 points Calculate the NPV for each machine. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, eg., 32.16) eBook Print NPV Machine A MachineB References Calculate the EAC for each machine. (Your answers should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EAC Machine A Machine B Which machine should the company choose? Machine A Machine BStep by Step Solution
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