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Two machines, A and B, which perform the same functions, have the following present value of costs and lives. Type Machine A Machine B

Two machines, A and B, which perform the same functions, have the following present value of costs and lives. Type Machine A Machine B PV Costs Life $6000 5 $8000 7 Which machine would you choose? The two machines are mutually exclusive and the cost of capital is 10%.

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