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You are considering two alternative machines, Machine A and Machine B, for a manufacturing process. One of the machines, Machine A, costs $30,000 to
You are considering two alternative machines, Machine A and Machine B, for a manufacturing process. One of the machines, Machine A, costs $30,000 to set up and $9,000 per year to operate, but It must be completely replaced every 6 years, and it has no salvage value. Assuming the cost of capital is 9.1%, what is the equivalent annual cost of the machine? $15,708 $16,808 $17,608 $19,108 $19,958 $20,958
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