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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 salesperson 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 buying Machine B?

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