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Kim Construction Management Company must choose between two pieces of building equipment. Super machine costs - $650,000 to purchase and it will last six years.

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Kim Construction Management Company must choose between two pieces of building equipment. Super machine costs - $650,000 to purchase and it will last six years. This Super perfect machine will require -$95,000 of maintenance cost each year. Slightly machine costs - $750,000 to purchase, but it will last seven years. Maintenance costs for Slightly machine are -$80,000 cost per year. The appropriate discount rate is 10 percent. Which machine should Kim purchase and why? EAC (Slightly) = $234,054.12 EAC (Super) = $234,054.12, purchase Super. EAC (Slightly) = $80,000 EAC (Super) = $238,450, purchase Slightly

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