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Machine A was purchased three years ago for $10,000 and had an estimated MV of $1,000 at the end of its 10-year life. Annual operating
Machine A was purchased three years ago for $10,000 and had an estimated MV of $1,000 at the end of its 10-year life. Annual operating costs are $1,000. The machine will perform satisfactorily for the next seven years. A salesman for another company is offering Machine B for $50,000 with an MV of $5,000 after 10 years. Annual operating costs will be $600. Machine A could be sold now for $7,000, and MARR is 12% per year. Using the outsider viewpoint, what is the EUAC of continuing to use Machine B? Click the icon to view the interest and annuity table for discrete compounding when MARR-12% per year Choose the closest answer below. OA. $7,965 O B. $8,565 Oc. $900 O D. $9,165 OE. $9,750
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