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Hard Floors Inc. is looking to purchase some new equipment. The cash flows for each option are shown below. If Hard Floors MARR is 10%,

Hard Floors Inc. is looking to purchase some new equipment. The cash flows for each option are shown below. If Hard Floors MARR is 10%, which option should be chosen?

Machine First Cost Annual Cost Useful Life
Smoothie $3,000 $1,660 4 years
Blaster $5,000 $1,000 4 years

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