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The Perez Company has the opportunity to invest in one of two mutually excluslve machines that will produce a product it wil need for the

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The Perez Company has the opportunity to invest in one of two mutually excluslve machines that will produce a product it wil need for the foresceable future. Machine A costs $10 million but realizes after-tax inflows of $4 milion per year for 4 years. After 4 years, the machine must be replaced. Machine B costs $15 mililan and realizes after-tax inflows of $3.5 million per year for 8 years, after which it must be replaced. Assome that machine prices are not expected to rise because infiation will be offset by cheaper components uted in the machines. The cost of capital is 10%. Using the replacernent chain approach to project analyshs, by how much would the value of the company increase if it accepted the better machine? Do not round intermediate calculations. Enter your answer in milions. For example, an answer of $1.23 mimion should be entered as 1.23 , not 1,230,000, Round your answer to two decimal places. 5 milison What is the equivalent annual annuity for each machine? Do not round intermediate calculations. Enter your answers in millions, For example, an answer of $1.23 mililon should be entered as 1.23, not 1,230,000. Round your answers to two decimal places

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