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A firm is considering the purchase of one of two new machines. The data on each are given. Initial cost $3,400 $6,500 Service life 3Years

A firm is considering the purchase of one of two new machines. The data on each are given. Initial cost $3,400 $6,500 Service life 3Years 6Years Salvage Value $100 $500 Net operating cost after taxes $2,000/year $1,800/year If the firms MARR is 12%, which alternative should be selected when using the fallowing methods? Annual equivalent cost approach Present-worth comparison

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