Question: QUESTION 5: Consider two mutually exclusive machines: A and B. Acquisition cost of A is $1,000 and that of B is $1,800. Assume that both

QUESTION 5: Consider two mutually exclusive machines: A and B. Acquisition cost of A is $1,000 and that of B is $1,800. Assume that both machines produce identical revenue and incur identical other costs over their lives. Both machines can be acquired repeatedly over time but the cost of capital ofA is 6% and the cost of capital of B is 8%. Additionally, their maintenance costs over their lives (A has economic life of 3 years and B has economic life of 6 years) are as follows: Year Maintenance Cost 132 132 132 132 132 130 160 160 160 4 Which of the two machines is economically more desirable

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