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Your office is considering one of two models of machinery that have unequal useful lives. The first has a 6-year useful life, a cost today
Your office is considering one of two models of machinery that have unequal useful lives. The first has a 6-year useful life, a cost today of $320,000 and after-tax operating expenses of $30,000 each year (i.e., at t = 1, t = 2, 3, 4, 5, & 6). What is the equivalent annual annuity (EAC) for this machine if the cost of capital is 14%? a. $115,330 b. $108,219 c. $115,329 d. $112,290 e. $114,218 f. $113,329 g. $114,324 h. $110,982
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