URGENT

Question 7 Two machines, A and B, which perform the same functions, have the following costs and lives Machine A PV of Costs 6,000 Life 8 years Machine B PV of Costs 8,000 Life 12 years B because the EAC is 667 B A because the EAC is 1,125 B because the EAC is 1,174 A because the PV of costs is 6,000 Question 8 For NPV calculations: A Only cash flows are relevant B Always estimate cash flows on an incremental basis Be consistent in the treatment of inflation. D All of these options 1.25 Points 1.25 Points