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The Perez Company has the oppoitunity to imvest in one of two mutually exilune machines that will produce a product is will need for the

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The Perez Company has the oppoitunity to imvest in one of two mutually exilune machines that will produce a product is will need for the foreseentle futire Madinet a costs 511 milhon but realizes after-tax inflows of 55 million per year for 4 years. After 4 years, the machine munt be replaced, Machine 8 costs 513 million and fralizes after. tax inflows of 53.5 million per year for 8 veari, after which it must be replaced. Assume thot machane prices are not expected to rise because inflarion wiif the affiset by cheaper comiponents iased in the machines. The cost of capital is 10%. Using the replacement chain approach ta project analysis, by how moch would the value of the company increase of it accepted the better machine? Do not round intermedate calculations. Enter your anwer in millions. For example, an ariswer of 51.23 million should be entered as 1:23, not 1,230,000, Round your answer to two decamal places. W million What is the rquivalent annial annuity for each machine? Do not round interisediate calcilations. Enter your anwwes in millions. For ecample, an answer of sti.23 mallion should be entered is 1 23, not 1,230,000. Round your answers to two decimal places. Machune ais 5 Mocharie 0:5

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