LENGAGE MINDIAP LI Practice Problems: Chapter 12 - Capital Budgeting: Decision Criteria x 15. Check My Work ER 19 20 22 12-9: Other Issues in Capital Budgeting Problem 12-17 Unequal Lives The Perez Company has the opportunity to invest in one of two mutually exclusive machines that will produce a product it will need for the foreseeable future. Machine A costs $8 million but realizes after-tax inflows of $4.5 million per year for 4 years. After 4 years, the machine must be replaced, Machine B costs $17 million and realizes after-tax inflows of $4.5 million per year for 8 years, after which it must be replaced. Assume that machine prices are not expected to rise because inflation will be offset by cheaper components used in the machines. The cost of capital is 139 a. By how much would the value of the company increase if it accepted the better machine? Enter your answer in millions For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places 5 1.26 million b. What is the equivalent annual annuity for each machine? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 12, not 1.200,000. Round your answers to two decimal places Machine A 5 0.78 million Machine 0.56 million ge