Answer Happy

The Perez Company has the opportunity to invest in one of twomutually exclusive machines that will produce a product it willneed for the foreseeable future. Machine A costs $10 million butrealizes after-tax inflows of $4 million per year for 4 years.After 4 years, the machine must be replaced. Machine B costs $15million and realizes after-tax inflows of $3.5 million per year for8 years, after which it must be replaced. Assume that machineprices are not expected to rise because inflation will be offset bycheaper components used in the machines. The cost of capital is10%. Using the replacement chain approach to project analysis, byhow much would the value of the company increase if it accepted thebetter machine? Do not round intermediate calculations. Enter youranswer in millions. For example, an answer of $1.23 million shouldbe entered as 1.23, not 1,230,000. Round your answer to two decimalplaces.
$ million
What is the equivalent annual annuity for each machine? Do notround intermediate calculations. Enter your answers in millions.For example, an answer of $1.23 million should be entered as 1.23,not 1,230,000. Round your answers to two decimal places.
Machine A: $ million
Machine B: $ million