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Super - Doopers is analyzing two machines to determine which one they should purchase. The company requires a 1 2 % rate of return and

Super-Doopers is analyzing two machines to determine which one they should purchase. The company requires a 12% rate of return and uses straight-line depreciation to a zero book value. Machine A has a cost of $400,000, annual operating costs of $25,700, and a 4-year life. Machine B costs $366,000, has annual operating costs of $30,000, and has a 5-year life. Whichever machine is purchased will be replaced at the end of its useful life. Super-Doopers should select machine _____ because it will save the company about _____ a year in costs.
Question 21 options:
B; $26,812
B; $26,119
A; $40,044
A; $26,119
A; $26,812

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