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Machine A costs $ 8 0 0 , requires annual maintenance of $ 1 5 0 , and will last for 1 0 years. Machine

Machine A costs $800, requires annual maintenance of $150, and will last for 10 years. Machine B
costs $600, requires annual maintenance of $200, and will last for 5 years. What is the calculated
present worth of machine B if the alternative will be chosen based on a present worth analysis and
the required return is 10%?
A. $843.31
B. $1,358.16
C. $1,721.69
D. $2,201.47
E. $2,716.47
Answer: D
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