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Machine A has a cost of $3,000 and an annual operating expense of $500, and an economic life of five years. Machine B has a
Machine A has a cost of $3,000 and an annual operating expense of $500, and an economic life of five years. Machine B has a cost of $5,000 and an annual operating expense of $400, and an economic life of eight years. The time value of money is 6%. Which one would you choose?
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