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You are considering buying one (and only one) of two machines, The first machine has a price of $12,500, and will last three years after

image text in transcribed You are considering buying one (and only one) of two machines, The first machine has a price of $12,500, and will last three years after which it can be sold for $2,000. Operations and Maintenance (O&M) costs are $5,000 per year. The second machine $ has a price of $15,000, and will last four years after which it can be sold for $1,500. Operations and Maintenance (O \& M) costs are $4,000 per year. The machines will be used indefinitely. The revenues will be the same with either machine. Your Minimum Acceptable Rate of Return (MARR) is 15%. a. Use Excel to find the breakeven interest rate(s). (12 marks) b. Use Excel to find the internal rate of return. Which machine should you choose? (12 marks)

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