3

3) A manufacturing company is considering two mutually exclusive machines E1 and E2 with the following cash flowinfomation: Machine E1 Machine E2 Cash- Salvage Cash- Salvage Flow ear Flow Value Value $300 $300 $200 $175 $150 $250 $250 $250 $250 $320 $280 $240 3 Which machine would you recommend if the company needseither machine for only 5 years? Assume a MARR of 12% and either machine would be available at the same cost over the next 5 vears