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Compare the alternatives A and B on the basis of a Annual Cost method using an interest rate of 8%/year. Note: You have to use
Compare the alternatives A and B on the basis of a Annual Cost method using an interest rate of 8%/year. Note: You have to use the specified method. Machine A Machine B First cost $25,000 $70,000 Annual Operating cost $6,000/year $5,000/year Salvage value $5,000 Overhaul every 4 years $3000 Life 7 years Compare the alternatives A and B on the basis of a Annual Cost method using an interest rate of 8%/year. Note: You have to use the specified method. Machine A Machine B First cost $25,000 $70,000 Annual Operating cost $6,000/year $5,000/year Salvage value $5,000 Overhaul every 4 years $3000 Life 7 years
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