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Your farm is now up and running, and you have to replace some of the old equipment. Specifically, you need a new finger weeder, but
Your farm is now up and running, and you have to replace some of the old equipment. Specifically, you need a new finger weeder, but need to analyze this purchase carefully. You consider two options whose specifications are summarized in the table below: Since the two machines have different economic lives, we cannot compare them directly. Instead, you have decided to calculate and compare their equivalent annual costs ("EAC"). Your tax rate is 20% and the discounting rate for this analysis is 14%
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