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What are the eacs of the two lathes

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Reference no: EM133110711

An Econo lathe costs $12,000 upfront and $2000 per year but will last only 4 years. A Lux lathe costs $15,000 upfront and $2500 per year but will last 6 years. At r=10% what are the EACs of the two lathes? The company should buy the one with the lower EAC.

Reference no: EM133110711

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