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Machine A was purchased 5 years ago for $90,000. Its operating cost is higher than expected, so it will be used for only (4) more

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Machine A was purchased 5 years ago for $90,000. Its operating cost is higher than expected, so it will be used for only (4) more years. Its operating cost this year will be $40,000, increasing by $2,000 per year through the end of its useful life. The challenger, machine B will cost $150,000 with a $50,000 salvage value after its 10-year ESL. Its operating cost is expected to be $10,000 for year 1, increasing by $500 per year thereafter. What is the market value of Machine A that would make the two machines equally attractive at an interest rate of 12% per year? a $7,225 C $14,253 b. $21,948 d. 549,388

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