Question: Machines A and B are mutually exclusive and are expected to produce the following real cash flows: The real opportunity cost of capital is 12%.

Machines A and B are mutually exclusive and are expected to

Machines A and B are mutually exclusive and are expected to produce the following real cash flows: The real opportunity cost of capital is 12%. a. Calculate the NPV of each machine. b. Calculate the equivalent annual cash flow from each machine. c. Which machine should you buy

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