Question: 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
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 21% and the discount rate is 10%. What are the net present values for these two projects? $16.378.59 for A and $54.782.54 for B -$1.787.22.for Aaod $11.156,09 for B D $12,486.55 for A and $41,421.13 for B $3.70449. foc A and $24.333.2 for B
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