Question: 2. Machines A and B are mutually exclusive and are expected to produce the following real cash flows. Calculate the equivalent annual cash flow from

2. Machines A and B are mutually exclusive and are expected

2. Machines A and B are mutually exclusive and are expected to produce the following real cash flows. Calculate the equivalent annual cash flow from each machine and decide which machine you should buy. Assume the cost of capital is 5%. Cash Flows ($ thousands) Machine +110 100 120 +121 110 121 133 (a) A: 67.59 B: 66.23 Choose A (b) A: 58.72 B: 69.91 Choose B (c) A: 33.54 B: 37.46 Choose B (d) A: 36.22 B: 32.37 Choose A

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