Question: A factory is deciding to replace a machine with a new one. The machine with the same technology as the current machine has equivalent annual
A factory is deciding to replace a machine with a new one. The machine with the same technology as the current
machine has equivalent annual cost of $15521. The new machine will cost $109000 with annual
operating cost of $890 and It has a 4 year life. Should the factory replace the current machine with a new machine if the discount rate is 10%?
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