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You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs

You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs $8,700and is expected to run for6years; Model B is more expensive, with a price of $14,900, and has an expected life of10years. The annual maintenance costs are $810for Model A and $750for Model B. Assume that the opportunity cost of capital is10percent.

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