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

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The Perez Company has the opportunity to invest in one of two mutually exclusive machines that will produce a product it will need for the foreseeable future. Machine A costs $11 mullion but realizes after-tax inflows of $5 million per year for 4 years. After 4 years, the machine must be repiaced, Machine B costs $13 million and fealizes after-tax infiows of 53.5 million per year for 8 years, after which it must be replaced. Assume that machine prices afe not expected to rise because inflation witi be offset by cheaper components used in the machines. The cost of capital is 10%. Using the replacement chain approach to project analysis, 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 milibons. For example, an answer of $1.23 milien should be entered as 1,23, not 1,230,000, Round your answer to two decimal places. $ million What is the equlwalent annual annuity for each machine? Do not round intermediate calculations. Enter your answers in millons. For example, an answer of st,23] milition ahould be entered as 1.23, not 1,230,000. Round your answers to two decimal places. Machine A: 5 thillion Machine B:5 miltion

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