Question: Question 33 You are considering two machines, A and B that can be used for the same. Rucrose. Machine A costs $250,000, will reduce costs

Question 33 You are considering two machines, A and B that can be used for the same. Rucrose. 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 21% and the discount rate is 10%. Calculate an Equivalent Annual Cost for each machine. What are they and which machine should you choose? O $234.4 for A and $4.233.4 for B, choose B 0.5471.65 for A and $1,815,6 for 8. choose 8 $7.909.22 for A and $1,705 for B, choose A $4.320.63 for A and $8.915.61 for B, choose B O $1.705.84 for A and $7.909.22 for 8. choose B Question 34 What is the NPV of the following set of cash flows if the required return or WACC is 12%? Year Cash Flow 0-$110,000 1 -$5,000 2 $50.000 3 $150,000 4-$25,000 O $6.274 O $15,365 $9.287 O $12.646 $16, 274

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