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Your company is comparing two machinery investments: A and B. Your company's real Minimum Attractive Rate of Return (MARR) is 11%. Average annual inflation rate
Your company is comparing two machinery investments: A and B. Your company's real Minimum Attractive Rate of Return (MARR) is 11%. Average annual inflation rate is 4%. Tax rate of 40%. Please consider taxes in your calculations unless otherwise mentioned. The properties of these investments are in the following table (all dollar values are in today's dollars): For both alternatives, answer the following questions considering applicable taxes whenever possible: a] Calculate the before-tax cash flow for both alternatives in current dollars. Please create the cash flow diagrams for both alternatives. Please only indicate cash flows provided in the previous table. b] Find the after-tax cash flow of alternatives A and B
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