Question: Machines A and B are mutually exclusive and are expected to produce the following real cash flows. Machine C3 Cash Flows 5 thousands) C2 -

 Machines A and B are mutually exclusive and are expected to
produce the following real cash flows. Machine C3 Cash Flows 5 thousands)

Machines A and B are mutually exclusive and are expected to produce the following real cash flows. Machine C3 Cash Flows 5 thousands) C2 - 118 -128 +100 -72 -106 -72 +78 The real opportunity cost of capital is 9% a. Calculate the NPV of each machine (Enter your answers in dollars not in thousands, Round your answers to the nearest whole dollar amount.) NPV Machine 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.) Cash Flow Machine A B

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