Solution-Determine the net present value for machine

Determine the net present value for machine

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A company is considering investing in one of two pieces of equipment that cuts lumber. Equipment A costs $66,000 and is expected to save the company $15,000 annual operating cash flows for 5 years. Equipment B costs $95,000 and is expected to save the company $25,000 annual cash flows for 5 years. Determine the net present value for each machine and decide which machine should be purchased if the required rate of return is 9 percent

Reference no: EM131097918

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Determine the net present value for machine

Reference no: EM131097918

Reference no: EM131097918

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