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Machine A costs 10,000 to buy and 3,000 per year to maintain. It is expected to last 3 years. Machine B costs 8,000 to buy
Machine A costs 10,000 to buy and 3,000 per year to maintain. It is expected to last 3 years. Machine B costs 8,000 to buy and 5,000 per year to maintain. It is expected to last 2 years. Assume the discount rate is 7%. All else being, which machine should be purchased and why?
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