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Cristiano Orlando, president of Better Juice Ltd , is considering the purchase of a machine that will improve the operations of the company. Two machines
Cristiano Orlando, president of Better Juice Ltd is considering the purchase of a machine that will improve
the operations of the company. Two machines are available. The CRJ costs $ and will last for
years. It will produce positive incremental cash flows of $ per year. The GS costs $
and will last for years. It will produce incremental cash flows of $ per year. The equivalent annual
annuity EAA of the machine they should choose is $ Assume a discount rate of
The equivalent annual annuity EAA for CRJ is $
The annual annuity EAA for GS is $
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