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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 $210,600, an annual operating cost of $23,166 and a machine life of 3 years.; Machine B has an upfront purchase price of $299,000, an annual operating cost of 537,375 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?" "\$263,493/ Machine A "\$440.445/Machine An $116,382/ Machine A - $116,382/ Machine B "\$440,445 / Machine B" "\$115,404 / Machine A "\$115,404 / Machine B" -\$440.445/ Machine B
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