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The Toroco Co. is considering two mutually exclusive pieces of machinery that perform the same task. Year Equipment A Equipment B 0 ($10,000) 1-2 1-3

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The Toroco Co. is considering two mutually exclusive pieces of machinery that perform the same task. Year Equipment A Equipment B 0 ($10,000) 1-2 1-3 4,050 NPV at 8% 342 437 a. Determine which model should be purchased using the Replacement Chain (RC) method. b. Calculate the equivalent annual annuity (EAA) for each model. ($10,000) 5,800

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