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Finance

A company must decide whether to buy Machine A or Machine B.

A B

First cost $9,000 $17,000

Annual maintenance $1,000 $450

Salvage value $4,000 $9,000

Useful life, in years 4 10

(a) What is the equivalent uniform annual cost (EUAC) of Machine A?

(b)What is the equivalent uniform annual cost (EUAC) of Machine B?

(c)Which machine should one choose?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91779688

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