Question: Question 32 1 pts You are considering two machines, A and B that can be used for the same purpose. Machine A costs $250,000, will
Question 32 1 pts You are considering two machines, A and B that can be used for the same purpose. Machine A costs $250,000, will reduce costs by $70,000 per year, needs net working capital of $20,000 at time zero which be released at the end of the project has a 5 year straight line depreciable life and can be sold at the end of the project's life for $50,000. Machine B costs $320,000, will reduce costs by the same $70,000 per year, has net working capital of $40,000 at time zero (also released at the end of its life), has a ten year straight line depreciable life and can be sold at the end of its life for $60,000. Assume that the tax rate is 31% and the discount rate is 10%. What are the net present values for these two projects? $1,787.92 for A and $11,156,09 for B $3,704.49 for A and $24.333.2 for B $2,486.55 for A and $21421.13 for B $5,692.41 for A and $29,119.92for B
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