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answer this question 1. Ridha Co plans to replace an existing machine and must choose between two machines. Machine 1 has an initial cost of
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1. Ridha Co plans to replace an existing machine and must choose between two machines. Machine 1 has an initial cost of OMR 200,000 and will have a scrap value of OMR 25,000 after four years. Additional maintenance cost of machine 1 is OMR 20,0000 Machine 2 has an initial cost of OMR 225,000 and will have a scrap value of OMR 50,000 after three years. Additional maintenance cost of machine 1 is OMR 25,0000. Ridha Co. can sell the existing machine for OMR 45,000 Annual earnings of the two machines are as follows: Year 1 1 2 3 4 Machine 175,000 65,000 50,000 45,000 (OMR per year) Machine 285,000 70,000 55,000 (OMR per year) Step by Step Solution
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