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You are comparing two options on purchasing a canning machine to decide which one is better to invest in for your company. They have different

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You are comparing two options on purchasing a canning machine to decide which one is better to invest in for your company. They have different cash streams that they will produce. Also, both machines will have a resale (salvage) value at the end of the 4-year project You borrow money at 8% interest You must have one of these for your plant, no matter what Option A - ACME canning machine Option 3 - Johnson canning machine Net cash flows produced Year Option A Option B 0 S(70.000) $(70,000) 1 $20,000 $ 35,000 2 $ 20.000 $ 35,000 3 $ 20,000 $ 35,000 $ 20.000 $ 35,000 Salvage $ 10.000 $ 9990 N a Calculate the payback period for each option which would you choose? Calculate the Simple Rate of Return for each option. Which would you choose, if bany? Calculate the Net Present Value for each option. Which would you choose, if any

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