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need solution of this question by using only this formula mentioned below- EAC = NPV --------- [1-(1+i)-n] --------- i PVAn= PMT [1-(1+i)-n] ----------- i only
need solution of this question by using only this formula mentioned below- EAC = NPV --------- [1-(1+i)-n] --------- i
PVAn= PMT [1-(1+i)-n] ----------- i only need solution by using these two formula. need proper solution each and every mathematical point needed.
Question 3. GMC is considering two option to buy a new machinery that will generate the same revenue for the company each year. The table below shows the initial and annual costs for each option. Option 1 155,000 3000 3100 Costs Initial Investment Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Option 2 165,000 2000 2200 2250 2300 2350 2400 3250 3300 3350 Required: Which option the company should choose based on EAC if the relevant discount rate is 7%Step by Step Solution
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