Question: How do I get the NPV for machine B? Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they
How do I get the NPV for machine B?
Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table: He is told to assume that 1. The life of each machine is 3 years 2. The company thinks it knows how to make 12% on investments no more risky than this one 3. Labor and maintenance are paid at the end of the year The NPV for Machine A=s (round your response to the nearest whole number and include a minus sign if necessary). The NPV for Machine B=5 (round your response to the nearest whole number and include a minus sign if necossary)
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