Hi all, Can someone please answer this question. Please, list all steps! thanks! Machines A and B are mutually...

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Finance

Hi all,

Can someone please answer this question. Please, list all steps!thanks!

Machines A and B aremutually exclusive and are expected to produce the following realcash flows:

     

Cash Flows ($ thousands)
MachineC0C1C2C3
A–102+112+123
B–122+112+123+135

     

The real opportunitycost of capital is 12%.

  

a.Calculate the NPV of each machine. (Do not roundintermediate calculations. Enter your answers in dollars not inthousands, e.g. 123,456. Round your answers to the nearest wholedollar amount.)

   

MachineNPV
A$
B$

    

b.Calculate the equivalent annual cash flow from each machine.(Do not round intermediate calculations. Enter your answersin dollars not in thousands, e.g. 123,456. Round your answers tothe nearest whole dollar amount.)

    

MachineCash Flow
A$
B$

  

c.Which machine should you buy?

Machine A
Machine B

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Hi all,Can someone please answer this question. Please, list all steps!thanks!Machines A and B aremutually exclusive and are expected to produce the following realcash flows:     Cash Flows ($ thousands)MachineC0C1C2C3A–102+112+123B–122+112+123+135     The real opportunitycost of capital is 12%.  a.Calculate the NPV of each machine. (Do not roundintermediate calculations. Enter your answers in dollars not inthousands, e.g. 123,456. Round your answers to the nearest wholedollar amount.)   MachineNPVA$B$    b.Calculate the equivalent annual cash flow from each machine.(Do not round intermediate calculations. Enter your answersin dollars not in thousands, e.g. 123,456. Round your answers tothe nearest whole dollar amount.)    MachineCash FlowA$B$  c.Which machine should you buy?Machine AMachine B

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