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A machine has operating costs of $300 annually and a salvage value of $100. A replacement of this would cost $1000 to purchase and its
A machine has operating costs of $300 annually and a salvage value of $100. A replacement of this would cost $1000 to purchase and its operating cost over a period of t years is given by: M = 200t + 10t2. Assuming a no interest condition,should the old machine be replaced with the new one?
| Yes
| |
| No | |
| Too little information to tell
|
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