TIAA Corporation has to choose between two machines that do the same job but have different lives Machine A has a life of three years Machine A costs $145,800 initially and then $43,320 per year in maintenance Machine B has an initial cost of $168,480 It requires $41,580 in maintenance for each year of its four year life Either machine must be replaced at the end of its life The discount rate is 25 and the tax rate is zero What is the equivalent annual cost for machine A and machine B (HINT Ch6 Obtain PV first and EAC (i e , Equivalent Annual Cost) can be found by solving for PMT ) $118,012 62 $112,921 46 $141,270 49 $141,768 29 $135,115 09 $117,594 09 $91,920 00 $83,700 00 TIAA Corporation has to choose between two machines that do the same job but have different lives Machine A has a life of three years Machine A costs $145,800 initially and then $43,320 per year in maintenance Machine B has an initial cost of $168,480 It requires $41,580 in maintenance for each year of its four year life Either machine must be replaced at the end of its life The discount rate is 25 and the tax rate is zero What is the equivalent annual cost for machine A and machine B (HINT Ch6 Obtain PV first and EAC (i e , Equivalent Annual Cost) can be found by solving for PMT ) $118,012 62 $112,921 46$141,270 49 $141,768 29$135,115 09 $117,594 09$91,920 00 $83,700 00

Question

TIAA Corporation has to choose between two machines that do the same job but have different lives  Machine A has a life of three years  Machine A costs $145,800 initially and then $43,320 per year in maintenance  Machine B has an initial cost of $168,480  It requires $41,580 in maintenance for each year of its four year life  Either machine must be replaced at the end of its life  The discount rate is 25  and the tax rate is zero  What is the equivalent annual cost for machine A and machine B  (HINT  Ch6  Obtain PV first and EAC (i e , Equivalent Annual Cost) can be found by solving for PMT ) $118,012 62  $112,921 46 $141,270 49  $141,768 29 $135,115 09  $117,594 09 $91,920 00  $83,700 00 TIAA Corporation has to choose between two machines that do the same job but have different lives  Machine A has a life of three years  Machine A costs $145,800 initially and then $43,320 per year in maintenance  Machine B has an initial cost of $168,480  It requires $41,580 in maintenance for each year of its four year life  Either machine must be replaced at the end of its life  The discount rate is 25  and the tax rate is zero  What is the equivalent annual cost for machine A and machine B  (HINT  Ch6  Obtain PV first and EAC (i e , Equivalent Annual Cost) can be found by solving for PMT ) $118,012 62 $112,921 46$141,270 49 $141,768 29$135,115 09 $117,594 09$91,920 00 $83,700 00

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TIAA Corporation has to choose between two machines that do the same job but have different lives. Machine A has a life of three years.

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