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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

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 three years and cost only $5,000 annually to run? The opportunity cost of capital is 12 percent.

$14,411

$5,000

$12,009

$15,000

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