Question: Show how to calculated using HP12c Machine B is expected to produce the following real cash flows: Cash Flows ($ thousands) Machine C0 C1 C2

Show how to calculated using HP12c Machine B is expected to produce the following real cash flows: Cash Flows ($ thousands) Machine C0 C1 C2 C3 B 132 +122 +133 +145 Machine C was purchased five years ago for $200,000 and produces an annual real cash flow of $75,000. It has no salvage value but is expected to last another five years. The company can replace machine C with machine B either now or at the end of five years. The real opportunity cost of capital is 12%. When should the company replace machine C? Replace now Replace after 5 years

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