Question: A certain industrial firm desires an economic analysis to determine which of two different machines should be purchased. Each machine is capable of performing the

A certain industrial firm desires an economic analysis to determine which of two different machines should be purchased. Each machine is capable of performing the same task in a given amount of time. Assume the minimum attractive return is 8%. The following data are to be used in this analysis: Which machine would you choose? Base your answer on annual cost.

Machine X Machine Y $8000 First cost $5000 Estimated life, in years Salvage value 12 $2000 Annual maintenance cost 150

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