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Calculate the npv of machine

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Reference no: EM131861969

NiceCookies Inc. is considering replacing its old machines. Suppose there are two machines available, A and B, which are mutually exclusive. Suppose these machines are expected to produce the following cash flows:

440_cash flows.png

The opportunity cost of capital is 10 %.

a. Calculate the NPV of each machine.

b. Calculate the equivalent annual cash flow of each machine.

c. Which machine should you buy?

Reference no: EM131861969

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