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A firm is choosing between machines that perform the same task in the same time. Assume the interest rate is 7%. Calculate each machine's EAUW
A firm is choosing between machines that perform the same task in the same time. Assume the interest rate is 7%. Calculate each machine's EAUW and determine which is the best option given the data below:
X or Y
First Cost- 7500 9250
Estimate life, in years- 7 12
Salvage Value- 0 2000
Annual maintenance Cost- 0 165
EAUW of Machine X ____
EAUW of Machine Y ____
Best Option :
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