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A company must decide whether to buy Machine A or Machine B. After 5 years Machine A will be replaced with another A. The initial

A company must decide whether to buy Machine A or Machine B. After 5 years Machine A will be replaced with another A. The initial cost for Machine A is $15,000, annual maintenance is $1,000, and the salvage value at 5 years is $10,000. Machine B has an initial cost of $20,000, 0 maintenance costs, and a salvage value of 0 at 10 years. Which machine should be purchased? Use a MARR of 10%.

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