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What is the maximum that should be paid

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Question - A machine being currently used costs $8,000 annually to run. What is the maximum that should be paid to replace the machine with one that will last four years and cost only $3,000 annually to run? The opportunity cost of capital is 10 percent.

a. $13,500.78

b. $14,550.87

c. $16,854.66

d. $15,849.33

Reference no: EM133033870

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