Calculating EAC Machine A costs 10,000 and costs 3,000 per year to maintain. It is expected to

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Calculating EAC Machine A costs £10,000 and costs

£3,000 per year to maintain. It is expected to last 3 years.

Machine B costs £8,000 and costs £5,000 per year to maintain. It is expected to last 2 years. Assume the discount rate is 20 per cent, which system should the firm choose?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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