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global marketing Thunderbird Tools, an industrial engineering firm, is considering purchasing a machine for its factory. It has two options to choose from. The retail
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Thunderbird Tools, an industrial engineering firm, is considering purchasing a machine for its factory. It has two options to choose from. The retail price for Machine X is $10,000, with annual maintenance and operations costs of $800, and annual insurance cost of $1,000. Machine Y has a retail price of $16,000. Machine Y increases productivity by $500 annually, and reduces the maintenance and operations costs by half annually compared to Machine X. The insurance cost is at $1,800 annually. The expected lifetime value of both machines is 10 years. What is the economic value to the customer (EVC) of Machine Y? 13500 O 12000 15500 O 11000 O 18000 Step by Step Solution
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