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please show how to solve 8-Bruno's, Inc. is analyzing two machines to determine which one it should purchase. The company requires a8% rate of return
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8-Bruno's, Inc. is analyzing two machines to determine which one it should purchase. The company requires a8% rate of return and uses straight-line depreciation to a zero-book value. Machine A has a cost of $290,000, annual operating costs of $8,000, and a 3 -year life. Machine B costs $180,000, has annual operating costs of $12,000, and has a 2 -year life. Whichever machine is purchased will be replaced at the end of its useful life. Which machine should Bruno's purchase and why? (Round your answer to whole dollars.) Step by Step Solution
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