Two machines used in your manufacturing plant

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Reference no: EM131452129

You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $90 initially, and then $135 per year in maintenance costs. Machine B costs $160 initially, has a life of three years, and requires $110 in annual maintenance costs. Either machine must be replaced at the end of its life with an equivalent machine. The discount rate is 13 percent and the tax rate is zero. Calculate the EAC. (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) EAC Machine A $ Machine B $ Which one should you choose? Machine A Machine B

Reference no: EM131452129

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