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the right answer is in red. if you could just show the steps to how it was found! 5-6. Consider the cash flows depicted in
the right answer is in red. if you could just show the steps to how it was found!
5-6. Consider the cash flows depicted in Table 5-6 relating to two machines. (The positive values in years 1-5 represent savings from the machines. The negative values in year 0 represent the initial costs of the 0 machines.) Assume that the machines will be used 2,000 hours per year. What are the equivalent annual net savings per hour associated with each machine, assuming an interest rate of 10%? Which machine should be chosen? Table 5.6 Cash Flows for Problem 5-6 n 0 1 2 Machine A -$50,000 $20,000 $18,000 $16,000 $14,000 $12,000 Machine B -$40,000 $18,000 $16,000 $14,000 $12,000 $10,350 3 4 5 Answer: Machine A: $1.59/hour, Machine B: $1.91/hour; Machine B should be chosenStep by Step Solution
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