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PROJECTS WHERE ONLY COSTS ARE CONSIDERED - EXERCISE You can buy a machine A that has a price of $500. Subsequently, a maintenance of $200
PROJECTS WHERE ONLY COSTS ARE CONSIDERED - EXERCISE You can buy a machine A that has a price of $500. Subsequently, a maintenance of $200 would have to be paid at the end of each year. There is another alternative that is machine B, which has a price of more than $800. However, a minor maintenance of only $50 would then have to be paid at the end of each year. Any of the machines have a useful life of three years and have no salvage value. Who should buy each of the machines?
Please put procedure of all.
\begin{tabular}{|l|l|l|l|} \hline Period & A & B & A-B \\ \hline 0 & & & \\ \hline 13 & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline NPV(i=0\%) & & & \\ \hline NPV(i=infinite\%) & & & \\ \hline IRR & & & \\ \hline IRR incremental & & & \\ \hline \end{tabular}Step by Step Solution
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