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Belpo5041
Oct 18, 2010, 06:32 PM
Machine 1 cost 150,000. Machine 2 cost 100,000. Cost of capital for both investment 9.5%. Life of both 5 years. Cash flow machine 1 17,000 per year during period and cash flow for machine 2 8000 per period per year. Cash flow include depreciation expenses. Calculate NPV and IRR for each machine and select the best choice.