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The manager of a canned food processing plantmust decide between two different labeling machines. Machine A will have a first cost of $42,000,an annual operating
- The manager of a canned food processing plantmust decide between two different labeling machines. Machine A will have a first cost of $42,000,an annual operating cost of $28,000, and a servicelife of 4 years. Machine B will cost $51,000 to buyand will have an annual operating cost of $17,000during its 4-year life. At an interest rate of 10% peryear, which should be selected on the basis of afuture worth analysis?
A.machine B
B.machine A
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