Question: 7 - Machines A and B are mutually exclusive and are expected to produce the following real cash flows:Cash Flows ( $ thousands ) Machine

7- Machines A and B are mutually exclusive and are expected to produce the following real cash flows:Cash Flows ($ thousands)Machine C0 C1 C2 C3 A102+112+123 B122+112+123+135The real opportunity cost of capital is 12%.Calculate the NPV of each machine.Calculate the equivalent annual cash flow from each machine.Which machine should you buy?

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