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Jax Inc is considering the purchase of a new machine for the production of computers. Machine A costs $ 7 , 0 0 0 ,
Jax Inc is considering the purchase of a new machine for the production of computers. Machine A costs $ and will last for six years. Variable costs are of sales, and fixed costs are $ annually. Machine B costs $ and will last for ten years. Variable costs for the machine are of sales, and fixed costs are $ annually. The sales for each machine will be $ per year. The required rate of return is the tax rate is and both machines will be depreciated using straightline depreciation with no salvage value.
Calculate the equivalent annual annuity for Machine ARound to decimals
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