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Jackson & Sons uses packing machines to prepare its products for shipping. They need to replace their primary packing machine and are considering two different

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Jackson \& Sons uses packing machines to prepare its products for shipping. They need to replace their primary packing machine and are considering two different options. Machine 1 costs $406,300 and lasts 3 years before it needs replaced. The annual aftertax operating cost for the machine is $36,500. Machine 2 costs $534,700 and should last for 6 years. It has an annual aftertax operating cost of $23,800. What is the equivalent annual cost of each machine if the required return is 19 percent? EAC for Machine 1= EAC for Machine 2=

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