You can choose between machine a or b your interest rate is, Ask an Expert

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You can choose between Machine A or B. Your interest rate is 6%. You need a Machine for an infinite time.

Machine A costs $22,000 and lasts for 3 years. It has no salvage value, and costs an additional $15,000 each year to operate.

Machine B costs $40,500 and lasts for 4 years. It has a salvage value of $20,000 and costs $2,000/year to operate.

Can you use the AEW method?___________

What is the Annual cost of the cheapest machine?_______________

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Financial Management, Finance

Category:- Financial Management
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