(Present value tables are needed.)Georgia Peach Farms is upgrading its fruit washing/separating machine. Georgia has narrowed the decision down to two machines: Machine A and Machine B.Pertinent information for each machine follows:
Machine A Machine B
Investment $450,000 $650,000
Useful life (years)10 10
Estimated annual net cash inflows for useful life $75,000 $120,000
Residual value $25,000 $35,000
Depreciation method straight-line straight-line
Required rate of return 10% 12%
Required:
a. Calculate the net present value of Machine A.
b. Calculate the net present value of Machine B.
c. Using the net present value method, which machine should Georgia select if it can select only one investment?

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The Answer of (Present value tables are needed.)Georgia Peach Farms is upgrading its fruit washing/separating machine. Georgia has narrowed the decision down to two machines: Machine A and Machine B.Pertinent information for each machine follows:
Machine A Machine B
Investment $450,000 $650,000
Useful life (years)10 10
Estimated annual net cash inflows for useful life $75,000 $120,000
Residual value $25,000 $35,000
Depreciation method straight-line straight-line
Required rate of return 10% 12%
Required:
a. Calculate the net present value of Machine A.
b. Calculate the net present value of Machine B.
c. Using the net present value method, which machine should Georgia select if it can select only one investment?

(Present Value Tables Are Needed