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Managers of Central Embroidery have decided to purchase a new monogram machine and are considering two alternative machines. The first machine costs $100,000 and is

Managers of Central Embroidery have decided to purchase a new monogram machine and are considering two alternative machines. The first machine costs $100,000 and is expected to last 5 years. The second machine costs $160,000 and is expected to lasts 8 years. Assume that the opportunity cost of capital is 8 percent. Which machine should Central Embroidery purchase?

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