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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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