Question 29 Danford Enterprises can invest in one of two mutually exclusive machines that will...
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Question 29 Danford Enterprises can invest in one of two mutually exclusive machines that will make a product it needs for the next 4 years Machine Acosts $7 million but realizes after-tax mflows of $5.0 million per year for 2 years, after which it must be replaced Machine B costs $9 million and realizes after-tax inflows of $3.4 million per year for 4 years. Based on the fam's cast of capital al 8 percent, the NPV of Machine B is $2,261,231, with an equivalent annual annuity (EAA) of 5682.713 per year Calculate the EA of Machine A Compare your result to that of Machine B and decide which to recommend
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