Question: Morton and Moore LLC (M2) is trying to decide between two machines that are necessary in its manufacturing facility. M2 has a required interest rate

Morton and Moore LLC (M2) is trying to decide between two machines that are necessary in its manufacturing facility. M2 has a required interest rate of 10%. Using the Equivalent Uniform Annual Worth, which of the following machines should be chosen? Machine A Machine B First Cost 50,000 36,000 Annual Operating Costs 31,000 30,000 Annual Benefit 6000 3000 Overhaul in Year 2 6.000 Overhaul in Year 4 10,000 Salvage value 10,000 8,000 Useful life 8 years 6 years
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