Question

For the cash flows shown, determine the incremental cash flow between machines B and A (a)...

For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6.

Machine A B

First Cost, $ -11,000    –25,000

AOC, $ per Year -1,400 –400

Salvage Value, $ 3,000 6,000

Life, Years 3 6

a) The incremental cash flow between machines B and A in year 0 is $ .___

b) The incremental cash flow between machines B and A in year 3 is $ . ___

c) The incremental cash flow between machines B and A in year 6 is $ .___

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