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An international textile company's North America Division must decide which type of fabric cutting machines it will use-a straight knife or a round knife. The

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An international textile company's North America Division must decide which type of fabric cutting machines it will use-a straight knife or a round knife. The estimates are summarized below. Compare them on the basis of annual worths at 8%. irst Cost AOC, per Year Overhaul in Year 2 Round Knife 200,000 $50,000 Straight Knife $250,000 50,000 lvage Value 50,000 6 years $14,000 4 years The (Click to see type of fabric cutting machine will be used by the company. to se round knife straight knife

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