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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 foreseeoble future. Machine A. costs $8 milion but realizes after-tax inflows of $4.5 milion per year for 4 years. After 4 vears, the machine must be replaced. Machine b costs $17 million and realces after-taxc inflows of $4 million per year for 3 years, after which it must be replaced. Assume that machine prices are not expected to fise because infiation will be offset by cheaper components used in the machines. The coct of capital is 13%. Using the replacement chain approach to project analyais, 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 $1.23 million shoule be entered as 1.23, not 1,230,000, Round your answer to two decimal places. . s. mition What is the equivalent anmul annoity for each machine? Do not round intermediote calculations. Enter vour answers in at lions, For examole, an answer of is.23 millign should be entered as 1.23, not 1,230,000. Pound your answers to two decmal places. MachineAisMachine8.;milionmillion

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