Kevin Smith, a plant manager at XYZ Corp must choose between two new machines with...
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Finance
Kevin Smith, a plant manager at XYZ Corp must choose between two new machines with unequal lives. Both machines can do the job but they have different operating costs and will last for different time periods. The discount rate for XYZ Corp is 11%.
Machine
0
1
2
3
A
-600
-130
-130
B
-750
-90
-90
-90
Calculate which project is less expensive for XYZ to purchase and use. Choose an approach that adjusts for the difference in useful lives of the machines. Kindly explain with reasoning
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