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

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Unequal Lives 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 million but realizes after-tax inflows of $5 milion per year for 4 years. After 4 years, the machine must be replaced Machine B costs $13 million and realizes after-tax inflows of $3.5 million per year for 8 years, after which it must be replaced. Assume that machine prices are not expected to rise because inflation will 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 Millions. For example, an answer of $123 million should be entered as 1.23, not 1,230,000 Round your answer to two decimal places $ million What is the equivalent annual annuity for each machine? Do not round intermediate calculations. Enter your answers in milions. For example, an answer of 51.23 million should be entered as 123, not 1,230,000 Round your answers to two doomal places millon Machine B million Machine AT

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