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Your company must purchase a machine to build the products it produces. There are two options: it could purchase Machine A which costs $65,000 initially;

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Your company must purchase a machine to build the products it produces. There are two options: it could purchase Machine A which costs $65,000 initially; $16,000 to operate annually; and has a salvage value of $6,000 at the end of 5 years. Alternatively, it could purchase Machine B which costs $125,000 initially: $5,000 to operate annually: and has a salvage value of $27,000 at the end of 5 years. Conduct a future worth analysis, assuming a MARR of 12%. Click here to access the TVM Factor Table calculator. Carry all interim calculations to 5 decimal places and then round your final answers to a whole number. The tolerance is 10. Which machine should your company purchase

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