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Machine is the best investment

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Reference no: EM131317417

If you could solve this problem using Excel that would be great!

1) A company is considering buying either Machine A or Machine B. Machine Both machines cost $42,392, but Machine A is expected to last 4 years and generate cash flows of $16,367 each year, while Machine B is only expected to last 2 years, but generate cash flows of $31,176 each year. If the WACC is 10%, which machine is the best investment? Calculate the RELEVANT NPV of each investment project, then obtain the difference. That is, enter the NPV of buying Machine A - the NPV of buying Machine B (and round to the nearest full number; no decimals!)

Reference no: EM131317417

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