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ZYX Corporation needs a new equipment for its operations. The company is considering two equipment: Equipment A and Equipment B. Equipment A costs $25,000, has
ZYX Corporation needs a new equipment for its operations. The company is considering two equipment: Equipment A and Equipment B. Equipment A costs $25,000, has a useful life of 20 years, and will reduce operating costs by $9,000 per year. While Equipment B cost only $22,000, will also reduce operating costs by $9,000 per year, but has a useful life of only 10 years. Required: Which equipment should be purchased according to payback method
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