Question: (Chapter 6) Bruno's is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 14.6 percent and

 (Chapter 6) Bruno's is analyzing two machines to determine which one

(Chapter 6) Bruno's is analyzing two machines to determine which one it should purchase. The company requires a rate of return of 14.6 percent and uses straight-line depreciation to a zero book value over a machine's life. Machine A costs $294.000, annual after tax operating cash flow.costs of $18,600, and a life of 2 years. Machine B has a cost of $636,000, annual after-tax operating cash flow.costs of $17.400, and a life of 3 years. Whichever machine is purchased will be relaced at the end of its useful life. Which machine should Bruno's purchase and why? (Hint: already provided you with after-tax operating cash flow costs. Similar to the problem in Quiz on Chapter 6) Machine A: because it will save the company about $33,020 a year Machine A: because it will save the company about $23,218 a year Machine A; because it will save the company about $26,812 a year Machine B; because it will save the company about $26,812 a year Machine B; because it will save the company about $36,200 a year

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