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The Lesselg Company has an opportunity to invest in one of two mutually exclusive machines that wall produce a product the cempany will need for

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The Lesselg Company has an opportunity to invest in one of two mutually exclusive machines that wall produce a product the cempany will need for the next 8 years, Machine A has an after-tax cost of $9.5 million but will provide after-tax inflows of $4.3 million per year for 4 years. If Machine A were repliaced, its after-tax, cost would be $11.1 millinn due to infiation and its after-tax cash inflows would increase to $4.7 million due to production efficiencles, Machine 8 has an after-tax cost of $14.5 milfion and wil prowide after-tax inflows of $4.3 milion per year for 8 vears. 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 s millions, rather than the $ milions created by Machine

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