Machine will be available in the future at the same costs

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Reference no: EM131848204

"Your company needs a machine for the next 20 years. You are considering two different machines. Machine A Installation cost ($): 1,500,000 Annual O&M costs ($): 86,000 Service life (years): 20 Salvage value ($): 70,000 Annual income taxes ($): 59,000 Machine B Installation cost ($): 0,750,000 Annual O&M costs ($): 101,000 Service life (years): 10 Salvage value ($): 52,000 Annual income taxes ($): 42,000 If your company s MARR is 11%, determine which machine you should buy. Assume that machine B will be available in the future at the same costs. Enter the Annual Equivalent Cost as a positive number of the preferred machine."

Reference no: EM131848204

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