Calculate the equivalent annual cash flow from each machine


Machines A and B are mutually exclusive and are expected to produce the following real cash flows: Cash Flows ($ thousands) Machine C0 C1 C2 C3 A –105 +115 +126 B –125 +115 +126 +138 The real opportunity cost of capital is 10%. a. Calculate the NPV of each machine. (Do not round intermediate calculations. Enter your answers in dollars not in thousands, e.g. 123,456. Round your answers to the nearest whole dollar amount.) Machine NPV A $ B $ b. Calculate the equivalent annual cash flow from each machine. (Do not round intermediate calculations. Enter your answers in dollars not in thousands, e.g. 123,456. Round your answers to the nearest whole dollar amount.) Machine Cash Flow A $ B $ c. Which machine should you buy? Machine A Machine B.

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Financial Management: Calculate the equivalent annual cash flow from each machine
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