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ABC Company must choose between two types of machines. Machine A costs $500,000, will last for three years, and will require $70,000 in maintenance each
ABC Company must choose between two types of machines. Machine A costs $500,000, will last for three years, and will require $70,000 in maintenance each year. Machine B costs $750,000, will last for four years, and will require $30,000 in maintenance each year. Maintenance costs for machines A and B occur at the end of each year. The appropriate discount rate is 15 percent per year. Which machine should ABC Company purchase
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