Question
You are evaluating two different machines. Machine A costs $25,000, has a five-year life, and has an annual OCF (after tax) of $6,000 per year.
You are evaluating two different machines. Machine A costs $25,000, has a five-year life, and has an annual OCF (after tax) of $6,000 per year. Machine B costs $30,000, has a seven-year life, and has an annual OCF (after tax) of $5,500 per year. If your discount rate is 10 percent, using EAC which machine would you choose?
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Cases In Healthcare Finance
Authors: Louis C. Gapenski, George H. Pink
4th Edition
1567933424, 978-1567933420
