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

Machines A and B are mutually exclusive and are expected to produce the following real cash flows: C3 Machine A B Cash Flows ($ thousands) C1 C2 -101 +111 +122 -121 +111 +122 +134 The real opportunity cost of capital is 11%. a. Calculate the NPV of each machine. (Do not round intermediate calculations. Enter your answers in dollars not in thousands, e.g. 123,456. Round your answers to the nearest whole dollar amount.) NPV Machine A $ B $ b. Calculate the equivalent annual cash flow from each machine. (Do not round intermediate calculations. Enter your answers in dollars not in thousands, e.g. 123,456. Round your answers to the nearest whole dollar amount.) Machine A B Cash Flow $ $ c. Which machine should you buy? O Machine A O Machine B
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