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12-5EAC Approach You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years,
12-5EAC Approach You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $80 initially, and then $125 per year in maintenance costs. Machine B costs $150 initially, has a life of three years, and requires $100 in annual maintenance costs. Either machine must be replaced at the end of its life with an equivalent machine.
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