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A company can purchase two machines to produce its products. Machine A has a cost of $480,000, a useful life of 4 years, and operating
A company can purchase two machines to produce its products. Machine A has a cost of $480,000, a useful life of 4 years, and operating costs of $50,000. By year. Machine B has a cost of $530,000. A useful life of 5 years and operating costs of $52,000.
Per year, if the discount rate is 15%, which machine should he buy?
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