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Machine A co years the machine can be sold for $2,750. uld be purchased for $27,500. It will last 10 years with annual maintenance costs

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Machine A co years the machine can be sold for $2,750. uld be purchased for $27,500. It will last 10 years with annual maintenance costs of $1,000 per year. After 10 Machine B could be purchased for $25,000. It also will last 10 years and will require maintenance costs of $4,000 in year three, $5,000 in year six, and $6,000 in year eight. After 10 years, the machine will have no salvage value. Required: Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Ignore income tax considerations. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Calculate the present value of Machine A & Machine B. Which machine Esquire should purchase? PV Machine A Machine B Esquire should purchaseMachine A Prev 1 of 3 Next> Ques 10

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