Explain what is the equivalent uniform annual cost

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Reference no: EM13228156

Machine A was purchased three years ago for $10,000 and had an estimated market value of $1,700 at the end of its 10-year life. Annual operating costs are $1,350. The machine will perform satisfactorily for the next seven years. A salesman for another company is offering Machine B for $57,000 with an market value of $5,700 after 10 years. Annual operating costs will be $950. Machine A could be sold now for $14,000, and MARR is 40% per year. Using the outsider viewpoint, what is the difference in the equivalent uniform annual cost (EUAC) of buying Machine B compared to continuing to use Machine A

Reference no: EM13228156

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