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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 8 years. Machine A has an after-tax cost of $9.7 million but will provide after-tax inflows of $4 million per year for 4 years. If Machine A were replaced, its after-tax cost would be $10.9 million due to inflation and its after-tax cash inflows would increase to $4.2 million due to production efficiencies. Machine B has an after-tax cost of $14.8 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.

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