Machine C was purchased five years ago for $200,000 and produces an annual real cash flow of $80,000. It has no salvage value but is expected to last another five years. The company can replace machine C with machine B either now or at the end of five years. Which should it do?

Answer rating: 100% (QA)

Net Present Value NPV is the difference between present value of cash inflows and cash outflows It h... View the full answer