Question: Two alternative machines, A and B, are being considered. Both have a 5-year life and the following cash flows: a) Compute the Present Worth of

Two alternative machines, A and B, are being considered. Both have a 5-year life and the following cash flows: a) Compute the Present Worth of each machine at $\mathrm{i}=10\%$. Which is preferred? b) Solve for the crossover rate, i*, at which the two machines are equivalent. Interpret your result in one sentence.

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