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Company XYZ must choose between two types of machines. Machine A costs $750,000, will last...

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Accounting

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Company XYZ must choose between two types of machines. Machine A costs $750,000, will last for four years, and will require $50,000 in maintenance each year. Machine B costs $800,000, will last. for 3 years, and will require $20,000 in maintenance each year. Maintenance costs for Machine A and B are at the end of each year. The appropriate discount rate is 15 percent per year. Which machine should the company purchase? Machine A, because EAC is less than EAC of Machine B Machine B, because EAC is less than EAC of Machine A Machine A becasue its EAC is higher than EAC of Machine B Machine B, because its PV is less than the PV of Machine A

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