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A currently used machine costs $ 1 0 , 0 0 0 annually to run. What is the maximum that should be paid to replace

A currently used machine costs $10,000 annually to run. What is the maximum that should be paid to replace the machine with one that will last 3 years and cost only $4,000 annually to run? The opportunity cost of capital is 12%.
Multiple Choice
a. $9,607.33
b. $10,388.56
c. $15,209.84
d. $14,410.99

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