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Sheikha, Inc. is analyzing two machines to determine which one it should purchase. The company requires a 14% rate of return and uses straight-line depreciation

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Sheikha, Inc. is analyzing two machines to determine which one it should purchase. The company requires a 14% rate of return and uses straight-line depreciation to a zero book value. Machine A has a cost of 290,000 KD, annual operating cash flow of 140,000 KD, and a 3-year life. Machine B costs 180,000 KD, has annual operating cash flow of 130,000 KD, and has a 2-year life. Whichever machine is purchased will be replaced at the end of its useful life. What is the equivalent annual abuity (EAA) of the machine that you would choose? O a. KD 16,980 O b.KD 20,688 O c. KD 18,340 O d.KD 24,503 O e KD 15,088

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