What is the annual cash flow from that model

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Thompson Manufacturing must choose between two types of furnaces to install. Model A has a 6 year life, and an NPV of $5,000. Model B has a 5 year life, and an NPV of $4,200. The relevant discount rate is 12%. Which model should be chosen? What’s the annual cash flow from that model?

Reference no: EM131217625

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