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The Lesseig Company has an opportunity to invest in one of two mutually exclusive machines that will produce a product the company will need for
The Lesseig Company has an opportunity to invest in one of two mutually exclusive machines that will produce a product the company will need for the next years. Machine A has an aftertax cost of $ million but will provide aftertax inflows of $ million per year for years. If Machine A were replaced, its aftertax cost would be $ million due to inflation and its aftertax cash inflows would increase to $ million due to production efficiencies. Machine has an aftertax cost of $ million and will provide aftertax inflows of $ million per year for years. If the WACC is which machine should be acquired? Explain. Enter your answers in millions. For example, an answer of $ should be entered as Do not round intermediate calculations. Round your answers to two decimal places.
Machine is the better project and will increase the company's value by $ millions, rather than the $ millions created by Machine
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