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You are trying to choose between purchasing one of two machines for a factory. Machine A costs $ 15,800 to purchase and has a three-year
You are trying to choose between purchasing one of two machines for a factory. Machine A costs $15,800 to purchase and has a three-year life. Machine B costs $17,600 to purchase but has a four year life. Regardless of which machine you purchase, it will have to be replaced at the end of its operating life. Assume a marginal tax rate of 35 percent and a discount rate of 14 percent.
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