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A company must decide whether to buy Machine A or Machine B Machine A Machine B Intial Cost 10,000 14,000 Useful life, in years 4
A company must decide whether to buy Machine A or Machine B Machine A Machine B Intial Cost 10,000 14,000 Useful life, in years 4 6 End of useful life savage Value 2,500 3,000 Annual Saving 1,200 1,000 Annual maintenance 800 500 At 10% (per year) interest rate, which machine should be installed, based on an Annual Cash Flow Analysis
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