Question: 6B. You can continue to use your less efficient machine at a cost of $10,000 annually for the next five years. Alternatively, you can purchase

 6B. You can continue to use your less efficient machine at

6B. You can continue to use your less efficient machine at a cost of $10,000 annually for the next five years. Alternatively, you can purchase a 5-year more efficient machine for $15,000 plus $5,000 annual maintenance. At a cost of capital of 15%, you should: A) Buy the new machine and save $525 in equivalent annual costs. B) Keep the old machine and save $525 in equivalent annual costs. c) Keep the old machine and save $1933 in equivalent annual costs. Answer D) Buy the new machine and save $1933 in equivalent annual costs

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