Question: Machines A and B are mutually exclusive and are expected to produce the following real cash flows: C3 Cash Flows ($ thousands) Machine co Ci


Machines A and B are mutually exclusive and are expected to produce the following real cash flows: C3 Cash Flows ($ thousands) Machine co Ci C2 A -116 +126 +137 B -74 +102 +74 +76 The real opportunity cost of capital is 11%. a. Calculate the NPV of each machine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.) Machine NPV A B b. Calculate the equivalent annual cash flow from each machine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.) b. Calculate the equivalent annual cash flow from each machine. (Enter your answers in dollars not in thousands. Round your answers to the nearest whole dollar amount.) Machine Cash Flow A B c. Which machine should you buy? Machine B O Machine A
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