2.13 NPV and AAA for Unequal Lives (Worksheet)
($ Millions)
| Machine A |
Machine B |
|||
| Year | Cash Flows | Discounted Cash Flow | Cash Flows | Discounted Cash Flow |
| 0 | ($10,000) | ($5,000) | ||
| 1 | 2,000 | 1,750 | ||
| 2 | 3,500 | 3,250 | ||
| 3 | 3,250 | 3,000 |
| NPV |
| 3 | ($5,000) | |||
| 4 | 3,000 | 1,750 | ||
| 5 | 2,750 | 3,250 | ||
| 6 | 2,500 | 3,000 | ||
| NPV | ||||
| AAA |