Use equivalent annual cost to evaluate

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Reference no: EM131609571

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 $5,000 plus $3,000 annual maintenance which will last 5 years. Use Equivalent Annual Cost to evaluate. The firm requires a 9% rate of return.

Reference no: EM131609571

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