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Unecual thaes ifin tae derim di plam. thentre11 The Ferez Compony has the opportunity to invest in one of two mutually exdlusive machines that will

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Unecual thaes ifin tae derim di plam. thentre11 The Ferez Compony has the opportunity to invest in one of two mutually exdlusive machines that will produce a product it will need for the foreseenble future. Machine A costs 511 million but realizes after-tax inflows of 55 million per vear for 4 years. After 4 years, the machine must be replaced. Machine 8 conts 513 mallion and fealices after . tax infiows of \$5.5 miltion per year for 8 years, after which ie must be replaced. Assume that machine prices are not expected to rise because inflation will be offuit by cheaper components used in the machines. The cont of capital is 10\%4. Using the replacement chain approach to project analysis, by how much woild the value of the company increase if it accepted the better machine? Do not round intermediate calculations. Enter your anwwer in millions. For example, an arower of s1:2] mullion should be entered as 1.23, not 1,230,000. Round your answer to two decimal places. What is the equivalent annual annuty for each machine? Do not round intermediate caloulations. Enter your answers in mallions. For example, an answer of 51.23 million should be entered os 1.23, not 1,230,000. focund your answers to two decimal places. Machine At: 5 Machine b: 5

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