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Three machines are under consideration and only one can be bought (i.e. these are mutual exclusive). MARR is 10%. Use the following information and find

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Three machines are under consideration and only one can be bought (i.e. these are mutual exclusive). MARR is 10%. Use the following information and find out which option should be purchased. Since lives differ, use an annual worth comparison Machine A Machine B $275,000 Machine C $200,000 Initial cost $185,000 Annual savings Annual maintenance | increasing by $350 each S32,000 S40,000 $35,000 S1000 for year 1, S2000 for year 1, increasing | by 4% each year thereafter S1000 for year 1, increasing by $350 each year thereafter cost year thereafter Life years 15 years years $14,800 $19,250 S20,000 Salvage value

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