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Orange Grove Enterprises is upgrading its fruit washing/separating machine. Orange Grove Enterprises has narrowed the...

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Orange Grove Enterprises is upgrading its fruit washing/separating machine. Orange Grove Enterprises has narrowed the decision down to two machines: Machine A and Machine B. Pertinent information about each machine include: Machine A Machine B $450,000 Investment $650,000 Useful life (years) 10 10 Estimated annual net cash inflows for useful life $120,000 $75,000 $25,000 Residual value $35,000 straight-line Depreciation method straight-line Required rate of return 10% 12% Present Value of $1 Periods 10% 12% Present Value of $1 Periods 10% 12% 0.424 0.361 0.386 0.322 0.350 0.287 Present Value of Annuity of $ Periods 10% 12% a 5.759 5.328 o 6.145 5.650 6.495 5.938 Required: 1. Calculate the net present value of Machine A. 2. Calculate the net present value of Machine B. 3. Using the net present value method, which machine should the 11 6.495 5.938 Required: 1. Calculate the net present value of Machine A. 2. Calculate the net present value of Machine B. 3. Using the net present value method, which machine should the company select if it can select only one investment? Answer: Please type in your problem-solving procedure and answers below. HTML Editor BIVA - A - IX E 33 33xx, # I I x . * v T T 12pt

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