Equivalent annual cost to evaluate

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Reference no: EM131609641

You can continue to use your less efficient machine at a cost of $4,000 annually for the next five years. Alternatively, you can purchase a more efficient machine for $6,000 plus $2, 500 annual maintenance which will last 5 years. Use Equivalent Annual Cost to evaluate. The firm requires a 10% rate of return.

Reference no: EM131609641

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