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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 $138,000, an annual operating cost of $15,180 and a machine life of 3 years.; Machine B has an upfront purchase price of $233,000, an annual operating cost of $15,145 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?" "$76,712 / Machine B" "$290,316 / Machine B" "$75,621 / Machine A" "$75,621 / Machine B" "$172,659 / Machine A" "$290,316 / Machine A" "$76,712 / Machine A" "$117,657 / Machine B
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