Problem 6-8 Equivalent annual cash flows 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 -103 +113 +124 -123 +113 +124 +136 The real opportunity cost of capital is 9%. 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.) Machine A B NPV 96 190 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 $ Cash Flow 54000 75 B c. Which machine should you buy? O Machine A O Machine B