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 8 years. Machine A has an after-tax cost of $8.1 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 $9.6 million due to inflation and its after-tax cash inflows would increase to $5.5 million due to production efficiencies. Machine B has an after-tax cost of $15 million and will provide after-tax inflows of $3.6 million per year for 8 years. If the WACC is 10%, which machine should be acquired? Explain. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places.

Machine -Select-AB is the better project and will increase the company's value by $____ millions, rather than the $____millions created by Machine -Select-AB .

This is just an example but solve the top question using this format.

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 8 years. Machine A has an after-tax cost of $8.1 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 $9.6 million due to inflation and its after-tax cash inflows would increase to $5.5 million due to production efficiencies. Machine B has an after-tax cost of $15 million and will provide after-tax inflows of $3.6 million per year for 8 years. If the WACC is 10%, which machine should be acquired? Explain. Enter your answers in millions. For example, an answer of $10,550,000 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 $ millions, rather than the $ millions created by Machir Since Machine A's renewal investment and cash flows change the EAA method cannot be used, so the replacement chain method must be used. Machine A's simple NPV is calculated as follows: Enter CF0=9.7 and CF14=4.6. Then enter I/YR=15, and press the NPV key to get NPVA=$3.433 million. However, this does not consider the fact that the project can be repeated. Enter these values into the cash flow register: CF0=9.7;CF13=4.6;CF4=6.4;CF58=4.9. Then enter I/YR=15, and press the NPV key to get extended NPVA=$5.14 million. B: Enter these cash flows into the cash flow register: CF0=14.8 and CF18=3.6. Then enter I/YR=15 and press the NPV key to get NPVB=$1.35 million. Machine A is the better project and will increase the company's value by $5.14 million, rather than the $1.35 million created by Machine B