Question: Holder Manufacturing is considering purchasing two machines. Each machine costs $8,000 and will produce cash flows as follows: Holder manufacturing uses the net present value
Holder Manufacturing is considering purchasing two machines. Each machine costs $8,000 and will produce cash flows as follows: Holder manufacturing uses the net present value method to make the decision, and it requires a 15% annual return on its investments. The present value (actors of 1 at 15% are: 1 year. 0.8696; 2 years, 0.7561; 3 years. 0.6575. inch machine should Holder purchase? Only Machine A is acceptable Only Machine B is acceptable. Doth machines are acceptable, but A should bo solicitor Bochum) it has the greater net present value. Both machines are acceptable, but B shook! be selected bourse it has the greater net present value Neither machine is acceptable
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