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Machine X has an upfront cost of $454,500 and annual operating costs of $13,725 over its 4-year life. Machine Y costs $405,000 upfront and has
Machine X has an upfront cost of $454,500 and annual operating costs of $13,725 over its 4-year life. Machine Y costs $405,000 upfront and has annual operating costs of $6,540 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 17.25% for both machine, what is the absolute value of the dollar difference between the EACs of the two machines? $9,577 $9,836 $10,094 $10,353 $10,612
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