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Managers of Crane Embroidery have decided to purchase a new monogram machine and are considering two alternative machines. The first machine costs $102,000 and is

Managers of Crane Embroidery have decided to purchase a new monogram machine and are considering two alternative machines. The first machine costs $102,000 and is expected to last five years. The second machine costs $163,000 and is expected to last eight years. Assume that the opportunity cost of capital is 8 percent. What is the equivalent annual cost for each system?

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