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A certain piece ofequipment has an initial cost of $10,000 with an annual maintenance cost of $500 per year with no salvage value at the
A certain piece ofequipment has an initial cost of $10,000 with an annual maintenance cost of $500 per year with no salvage value at the end of its useful life of 4 years. There is an alternative equipment that costs $20,000 with no maintenance cost the first year. However, it has a maintenance cost of $100 the second year and increases $100 per year in subsequent years. Its salvage value is $5,000 and has a useful life of 12 years. The MARR is 8%. Which machine should be selected?
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