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Please explain A and B 1a) Use Present worth analysis to determine the most economical option for the following (you must choose one option-doing nothing
Please explain A and B
1a) Use Present worth analysis to determine the most economical option for the following (you must choose one option-doing nothing is not an option). Take the ito be 10% Option 1: Invest $30,000 in a machine that will cost $6450 a year to maintain and has a life span of 5 years. Option 2: Invest $38,000 in a machine that will cost $4600 a year to maintain and has a life span of 4 years. 1b) Is there a time frame that would justify changing to the other option? Justify yourStep by Step Solution
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