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Machines H and I are mutually exclusive and have the following investment and operating costs: Year Machine 0 1 2 3 H 1 0 0

Machines H and I are mutually exclusive and have the following investment and operating costs:

Year

Machine

0 1 2 3

10000 1100 1200 0

12000 1100 1200 1300

Calculate the annual equivalent cost at

10 %

interest. Which machine is cheaper and worth it

?

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