Question: A company is considering two machines to replace an old machine. Machine A has a life of 8 years, will cost $64300, and will produce

A company is considering two machines to replace an old machine. Machine A has a life of 8 years, will cost $64300, and will produce net cash savings of $5800 per year. Machine B has an expected life of 4 years, will cost $32600, and will produce net cash savings in operating costs of $6600 per year. The company's cost of capital is 11%. What decision should be made if you use (i) infinite horizon NPV (EAA approach), and (ii) common life approach

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