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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
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 $9 milion but realizes after-tax inflows of $3.5 milion per year for 4 years. After 4 years, the machine must be replaced. Machine B costs $14 million and realizes after-tax inflows of $3 million per year for 8 years, after which 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 8%. Using the replacement chain approach to project analysis by how much would the value of the company increase if accepted the batter machine? Do not round intermediate calculations. Enter your answer in million. For example, an answer of $1.23 million should be entered as 1.23, no 1,230,000. Round your answer to two decimal place. $willon What is the equivalent annual annuity for each machine? Do not reund intermediate calculations. Enter your answers in millors. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places. Machine Als Machine Bas
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