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Problems 1. Allred Inc. is trying to decide whether to purchase Machine A or Machine B. Below are the associated costs. Which are relevant? Machine

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Problems 1. Allred Inc. is trying to decide whether to purchase Machine A or Machine B. Below are the associated costs. Which are relevant? Machine A $70,000 Relevant or Not Relevant? Cost of Machine Machine B $70,000 Setup Costs $6,000 $5,000 $400 $600 Costs incurred for research of the machine Annual operating costs for the machine $3,000 $2,500

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