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2. Machines J and K have the following investment and operating costs: Year 0 1 2 3 J 11000 1200 1300 K 13000 1200 1300

2. Machines J and K have the following investment and operating costs:

Year 0 1 2 3

J 11000 1200 1300

K 13000 1200 1300 1400

Which machine is a better buy at a WACC of 10.5%?

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