Phoenix Products requires a new machine. Two companies have submitted bids, and you are responsible for choosing which m

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answerhappygod
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Phoenix Products requires a new machine. Two companies have submitted bids, and you are responsible for choosing which m

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Phoenix Products requires a new machine. Two companies have
submitted bids, and you are
responsible for choosing which machine to buy. Cash flow analysis
indicates the following:
Year Machine A Machine B
0 -$2,000 -$1,000
1 0 430
2 0 430
3 0 430
4 5,000 430
What is the IRR for each machine?
What is the NPV for each machine? (assume a cost of capital of 5
percent)
Calculate the MIRR for each machine.
Which machine should be chosen and why?
*solve with scientific calculator
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