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Machine A costs $8500 and has annual operating costs of $4500. Machine B costs $7000 and has an annual operating cost of $4800. Each machine

Machine A costs $8500 and has annual operating costs of $4500. Machine B costs $7000 and has an annual operating cost of $4800. Each machine has an economic life of 10 years. If the minimum required rate of return is 10 percent, compare the advantages of machine A by (a) present worth method, (b) annual cost method, and (c) rate of return on investment.

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