Question: Answer question below. Question 3 Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($

Answer question below.

Question 3 Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands) Machines Co C1 C2 C3 A -100 +110 +121 B -120 +110 +121 +133 The real opportunity cost of capital is 10%. a. Calculate the NPV of each machine. b. Calculate the equivalent annual cash flow from each machine and determine which machine should you buy? c. Use the least common multiples of lives to find out which machine you should opt for

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