Question: Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands} Machine 9 C1 C2


Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands} Machine 9 C1 C2 C3 A -133 +113 +124 B -123 +113 +124 +136 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.) A _| El 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}
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