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11.5 Managers of central Embroidery have decided to purchase a new monogram machine and are considering two alternative machines. The first machine cost $100,000 and

11.5 Managers of central Embroidery have decided to purchase a new monogram machine and are considering two alternative machines. The first machine cost $100,000 and is expected to last five years. The second machine cost $160,000 and is expected to last eight years. Assume that the opportunity cost of capital is 8 percent. Which machine should central Embroidery purchase?

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