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Machine A was purchased three years ago for exist10,000 and had an estimated market value of exist1,000 at the end of its 10-year life. Annual operating costs are exist1,000. The machine will perform satisfactorily for the next seven years. A salesman for another company is offering Machine B for exist50,000 with an market value of exist5,000 after 10 years. Annual operating costs will be exist600. Machine A could be sold now for exist7,000, and MARR is 9% per year. Using the outsider viewpoint, what is the difference in the equivalent uniform annual cost (EUAC) of buying Machine B compared to continuing to use Machine A: i.e., EUAC(Machine B) - EUAC(Machine A). (Do not enter the dollar sign exist with your answer.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92404924

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