Question
The FIN340 Company is evaluating the purchase of 2 competing machines and wants to choose the machine with the lower equivalent annual cost (EAC); Machine
The FIN340 Company is evaluating the purchase of 2 competing machines and wants to choose the machine with the lower equivalent annual cost (EAC); Machine A has an upfront purchase price of $189,700, an annual operating cost of $37,940 and a machine life of 3 years.; Machine B has an upfront purchase price of $280,000, an annual operating cost of $18,200 and a machine life of 6 years; If our company has a WACC of 15.0%, which machine has the lower equivalent annual cost (EAC) and what is its EAC?"
| "$92,186 / Machine B" | ||
| "$92,186 / Machine A" | ||
| "$276,326 / Machine B" | ||
| "$348,878 / Machine B" | ||
| "$121,024 / Machine B" | ||
| "$121,024 / Machine A" | ||
| "$348,878 / Machine A" | ||
| "$348,878 / Machine A" |
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Investing Made Simple And Easy The 49 Essential Personal Finance Wealth Management And Trading Tips That Pros Should Share
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