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17. Company ABC can purchase Machine A at a cost of $270,000 that will cost $4,000 per month to operate and have estimated salvage value
17. Company ABC can purchase Machine A at a cost of $270,000 that will cost $4,000 per month to operate and have estimated salvage value of $10,000 or Machine B at a cost of $350,000 that will cost $2000 per month to operate and have estimated salvage value of $35,000. Time horizon is 6 years and discount rate is 10%. Which machine is the better investment? a. Machine A b. Machine B A - (4000 * 12) x 4.355 + 10,000x. 964 - 270,000 - 473, 400 - ( 2000 * 12) x 4.365+ 35000 *564 - 350,000 - 434 780
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