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Java coffee Co. Is evaluating two machines (mutually exclusive) to decide which one it should purchase. Machine A has a cost of $386,000, annual operating

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Java coffee Co. Is evaluating two machines (mutually exclusive) to decide which one it should purchase. Machine A has a cost of $386,000, annual operating costs of $29,000, and a life of four years. Machine B costs $257,000, has annual operating costs of $19,000, and a life of 3 years. Whichever machine is purchased, it will be replaced at the end of its useful life. The company requires a return of 15 percent and uses straight-line depreciation to o zero book value over the life of the machine. The firm currently pays no taxes Which machine should be purchased and why? Multiple Choice -16 Machine A because it will save the company about $32.642 a year Machine A because it will save the company about $19.261 a year Machine because it will save the company about $10.000 a year Machine because it will save the company about 532542 a year Machine because it will save the company about 519 201 a year

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