You are trying to choose between purchasing one of two machines for a factory. Machine...
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You are trying to choose between purchasing one of two machines for a factory. Machine A costs $15,700 to purchase and has a three-year life. Machine B costs $17,200 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. Which machine should you choose? Assume a marginal tax rate of 35 percent and a discount rate of 14 percent. (Round answers to 2 decimal places, e.g. 15.25.) Equivalent Annual Cost (EAC) of machine A 6536.76 Equivalent Annual Cost (EAC) of machine B 5200.62 Choose Machine B
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