Multiple Choice
Toy Manufacturers (TM) is considering two mutually exclusive machines to use in its manufacturing process. The net cash flows for each are given below:
If the cost of capital for TM is 13%, which machine should they purchase?
A) Beta: has the highest total net cash flows
B) Beta: it has the highest NPV
C) Axa: it has the highest NPV using infinite replacement
D) Beta: it has the highest NPV using infinite replacement
Correct Answer:

Verified
Correct Answer:
Verified
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