Question
Can I get a detailed answer for this question but not on excel, I know the answer is C but I don't know how to
Can I get a detailed answer for this question but not on excel, I know the answer is C but I don't know how to solve it
Letters R Us Co. wants to purchase a multi-function copier machine. It can either buy a $25,000 machine or a $50,000 machine. The $25,000 machine will cost $10,000 per year to operate, and it will last 5 years. The $50,000 machine will cost $5,000 per year to operate, and it will last 7 years. The company has decided to use a discount rate of 8% to evaluate this acquisition. Assuming that, whichever copier is acquired, it will be replaced at the end of its life, which copier should Letters R Us purchase? a. the $50,000 machine, with an EAC of $14,494.25 b. the $25,000 machine, with an EAC of $16,261.41 c. the $50,000 machine, with an EAC of $14,603.62 d. the $25,000 machine, with an EAC of $1,657.79 e. the $50,000 machine, with an EAC of $36,273.78
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