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ABC Inc. has been in business for the past century. It requires the service of a reliable machine needed for an existing line of business

ABC Inc. has been in business for the past century. It requires the service of a reliable machine needed for an existing line of business that has been very successful over the past few decades. ABC Inc. is considering two different machines, Model A or Model B.
Model A requires an initial investment of $12,500. It has a maintenance cost of $5,000 for Year 1; $5,000 for Year 2 and $3,000 for Year 3.
Model B requires an initial investment of $15,000. It has a maintenance cost of $4,000 for Year 1; $4,000 for Year 2; $4,000 for Year 3 and $2,500 for Year 4.
Assume that the Interest Rate =10%. Assume that all dollar amounts are to be paid at the end of the year. You have been hired as the finance advisor for ABC Inc. Provide a thorough recommendation for ABC Inc. Reminder: Writing only the final answer is NOT sufficient.

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