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1) A firm is considering the purchase of only one of two new machines. The data on each is given below: Machine A Machine B

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1) A firm is considering the purchase of only one of two new machines. The data on each is given below: Machine A Machine B $8,500 $3,400 Initial Cost 6 years $500 Economic Life 3 years Salvage Value $100 $1,200 $2,000 (O Myear By using rate of return on incremental investment, detenmine which machine should be selected (If the firm's MARR is 12 % ) ( Draw the CFD for the incremental) (15 points)

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