Question: A company is considering two alternative machines with different net cash flows and salvage values. Present value amounts are calculated using Excel and the results
A company is considering two alternative machines with different net cash flows and salvage values. Present value amounts are calculated using Excel and the results follow.


A company is considering two alternative machines with different net cash flows and salvage values. Present value amounts are calculated using Excel and the results follow. Potential Machine Investments A Present value of net cash flows (excluding initial investment and salvage) $ 20,102 Present value of net cash flow from salvage value 2,300 Initial investment (20,200) a. Compute the net present value of each machine A and B. b. If the company can choose only one machine, which will it choose on the basis of net present value? B $ 21,000 572 (20,200) Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of each machine A and B. B Present value of net cash flows Present value of net cash flow from salvage value Total Initial investment Net present value
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