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m Consider two machines, X and Y, which perform the same functions, have the following costs and lives. Type PV of Costs Life Machine X
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Consider two machines, X and Y, which perform the same functions, have the following costs and lives. Type PV of Costs Life Machine X $3,000,000 5 years Machine Y $6,000,000 12 years If the discount rate is 10% per annum, which following statement is most accurate? (Hint: EAC is the Equivalent Annual Cost) Select one: O a. Machine X, as it has a lower EAC of $689,892 Ob. Machine X, as it has a lower EAC of $1,789,892 Oc. Machine y, as it has a higher EAC of $880,580 Od Machine X, as it has a lower EAC of $791,392 Machine Y as it has a higher EAC of $1.922,880Step by Step Solution
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