What is the NPV and EAC of Project B

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Question - Machine A is an initial cost of 75k with an expected lifespan of 5 year and an annual maintenance expense of 20k. Machine B is an initial cost of 125k with an expected life span of 8 years and an annual maintenance cost of 15k. The cost of capital for the firm is 5%.

Required -

1. What is the NPV and EAC of Project A?

2. What is the NPV and EAC of Project B?

Reference no: EM132846195

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