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Faleye Consulting is deciding which of two computer systems to purchase. It can purchase state-of-the-art equipment (System A) for an after-tax cost of $22,000, which will generate after-tax cash flows of $7,000 at the end of each of the next 6 years. Alternatively, the company can purchase equipment with an after-tax cost of $12,000 that can be used for 3 years and will generate after-tax cash flows of $7,000 at the end of each year (System B). If the company's WACC is 5% and both "projects" can be repeated indefinitely, which system should be chosen, and what is its EAA? Do not round intermediate calculations. Round your answer to the nearest cent. Choose Project -Select- whose EAA = $ The Lesseig Company has an opportunity to invest in one of two mutually exclusive machines that will produce a product the company will need for the next 8 years. Machine A has an after-tax cost of $9.4 million but will provide after-tax inflows of $4.5 million per year for 4 years. If Machine A were replaced, its after-tax cost would be $11.1 million due to inflation and its after-tax cash inflows would increase to $5 million due to production efficiencies. Machine B has an after-tax cost of $14.1 million and will provide after-tax inflows of $4 million per year for 8 years. If the WACC is 6%, which machine should be acquired? Explain. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places. Machine -Select- is the better project and will increase the company's value by $ millions, rather than the $ millions created by Machine -Select

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