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The Lesseig Company has an opportunity to invest in one of two mutually exdusive machines that will produce a product the company will need for

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The Lesseig Company has an opportunity to invest in one of two mutually exdusive machines that will produce a product the company will need for the next 8 years. Machine A has an after-tax cost of $9.2 million but will provide after-tax inflows of $5 million per year for 4 years. If Machine A were replaced, its after-tax cost would be $9.7 million due to inflation and its after-tax cash infiows would increase to $5.3 milition due to production efficiencies. Machine 8 has an after-tax cost of $13.6 million and will prowide after-tax inflows of $3.9 milison per year for 8 years. If the WACC is 5%, which machine should be acquiredt Explain, Enter your answers in millions, For example, an answer of 310,550,000 should be entered as 10.55. 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 s militions, rather than the 1 mations created by Machine The Lesselg 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 after-tax cost of $9.2 milion but will provide after-tax inflows of $5 million per year for 4 years. If Machine A were repiaced, is after-tax cost would be $9.7 million due to inflation and its after-tax cash infiows would increase to 55.3 million due to production elficiencies. Machine 8 has an after-tax cost of $13.6 million and will provide after-tax inflows of $3.9 million per year for 8 years, if the Wacc is 5%, which machine should be acquired? Explain. Enter your answers in milions. For exampie, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations, flound your answers to two decimal piaces, Machine is the better project and will increase the company's value by 4 millions, rather than the $ militions created by Machine

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