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The Best Company is reviewing two options for replacing a piece of machinery. The first machine costs $76,500 and has a four-year life. The second
The Best Company is reviewing two options for replacing a piece of machinery. The first machine costs $76,500 and has a four-year life. The second machine costs $103,000 and has a six-year life. Neither machine will have a salvage value. The machines will be replaced at the end of their life. What method should be used to determine which machine to purchase? Total cash flows Equivalent annual cost Internal rate of return Net present value
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