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Machine X has an upfront cost of $424,500 and annual operating costs of $12,825 over its 4-year life. Machine Y costs $385,000 upfront and has
Machine X has an upfront cost of $424,500 and annual operating costs of $12,825 over its 4-year life. Machine Y costs $385,000 upfront and has annual operating costs of $6,220 over its 3-year life. Whichever machine is purchased will continue to be replaced at the end of its useful life. If the required return is 16.25% for both machine, what is the absolute value of the dollar difference between the EACs of the two machines?
Question 11 options:
| $12,079 |
| $12,406 |
| $12,732 |
| $13,059 |
| $13,385 |
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