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The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs:
The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A Machine B 0 $47,000 $57,000 1 11,400 10,800 2 11,400 10,800 3 11,400 10,800 4 10,800 Assume a 10% discount rate and ignore taxes. a) What is the equivalent annual cost of each machine? b) Which machine should the company buy
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