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Machine A was purchased last year for $20,000 and had an estimated MV of $2, 500 at the end of its five-year life. Annual operating

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Machine A was purchased last year for $20,000 and had an estimated MV of $2, 500 at the end of its five-year life. Annual operating costs are $2,000. The machine will perform satisfactorily over the next four years. A salesman for another company is offering a replacement. Machine B. for $14, 700. with an MV of $1, 300 after four years. Annual operating costs for Machine B will only be $1, 400. A trade-in allowance of $10, 200 has been offered for Machine A. If the before-tax MARR is 6% per year, should you buy the new machine? Click the icon to view the interest and annuity table for discrete compounding when MARR = 6% per year. Choose the correct answer below. No. continue with Machine A. Yes. purchase Machine B

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