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A company has 2 machines and one of them is broken. The company decides to buy a machine or not. The machine has a book

A company has 2 machines and one of them is broken. The company decides to buy a machine or not. The machine has a book value of $700K. If they decide not to buy, every year it costs them $174K. Depreciation and interest rate and tax must be used. And our teachers expect us to make comments about which strategy is useful with an interest rate of 10%.

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