A company wants to buy a new machine to produce latex. One of the machines cost $ 3,042,000 and will last for six years. The other machine will cost $5220,000 and will last for nine years. The variable cost are 30 percent on the sales, and the fixed costs are $125,000 per year. The sales for the 2 machines will be $10 million per year. The return is 9 % and the tax rate is 34 %
How do you calculate the NPV for each machine
How do you calculate the EAC for each machine