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Machine A costs $100 to buy and $10 per year to operate. It wears out and must be replaced every two years. Machine B costs
Machine A costs $100 to buy and $10 per year to operate. It wears out and must be replaced every two years. Machine B costs $140 to buy and $8 per year to operate. It wears out and must be replaced every three years. Using a 10 percent required return, compute the equivalent annual cost for each machine. (Both answers will be negative.)
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Machine A ?
Machine B ?
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