Determine via present value method which machine

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Reference no: EM132144736

Your boss has told you to evaluate two ovens for Think the Thinkers, a gourmet sandwich shop. After some investigation, he determines that they have the following costs. He is told to assume that: a) The life of each machine is 4 years b) The company thinks it knows how to make 10% on investments no more risky than this one. At the end of the fourth year, the two different ovens can have a salvage value of $250 and $500, respectively.

Determine via present value method which machine to tell your boss to purchase.

Reference no: EM132144736

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