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The Toroco Co. is considering two mutually exvclusice pieces of machinery that perform the same task. Year Equipment A Equipment B 0 ($10,000) ($10,000) 1-2
The Toroco Co. is considering two mutually exvclusice pieces of machinery that perform the same task.
| Year | Equipment A | Equipment B |
| 0 | ($10,000) | ($10,000) |
| 1-2 | 6,100 | |
| 1-6 | 2,400 | |
| NPV at 8% | 877 | 1,095 |
a. Determine which model should be purchased using the Replacement Chain (RC) method.
Please show how you determined the new NPV as well.
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