QUESTION 2 The Oz Corp has the opportunity to invest in one of two mutually exclusive devices that will produce a product it will need for the foreseeable future. Device A costs $12 million but realizes after-tax inflows of $6.5 million per year for 5 years. After 5 years, the machine must be replaced. Device B costs $15 million and realizes after-tax inflows of $5.5 million per year for 10 years, after which it must be replaced. Assume that device prices are not expected to rise because inflation will be offset by cheaper components used in the machines. The cost of capital is 12%. a. Using the replacement chain approach to project analysis, by how much would the value of the company increase if it accepted the better machine? b. What is the equivalent annual annuity for each machine