Question: QUESTION 3 Machine A was purchased last year for $10,000 and had an estimated market value of $1,300 at the end of its 6-year life.
QUESTION 3 Machine A was purchased last year for $10,000 and had an estimated market value of $1,300 at the end of its 6-year life. Annual operating costs are $1,150. The machine will perform satisfactorily for the next five years. A salesman for another company is offering Machine B for $53,000 with an market value of $5,300 after 5 years. Annual operating costs will be $750. Machine A could be sold now for $10,000, and MARR is 19% per year. Using the outsider viewpoint, what is the difference in the equivalent uniform annual cost (EUAC) of buying Machine B compared to continuing to use Machine A le, EUACIMachine B) - EUAC(Machine A). (Do not enter the dollar sign S with your answer.)
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