Question: PLEASE SHOW CALCULATION TOOLS AND STEPS IN EXCEL Equivalent Annual Cost (EAC) Problem ACE Corporation is looking at buying three machines. Machine 1 will cost

PLEASE SHOW CALCULATION TOOLS AND STEPS IN EXCEL

Equivalent Annual Cost (EAC) Problem

ACE Corporation is looking at buying three machines.

Machine 1 will cost $20,000, have a useful life of 6 years, and will have costs of $4,500 annually.

Machine 2 will cost $25,000, have a useful life of 8 years, and will have costs of $4,250 annually.

Machine 3 will cost $18,000, have a useful life of 5 years, and will have costs of $4,600 annually. Which machine should ACE purchase if the discount rate is 10%?

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