Question: Question 7 (10 marks) Honey Well Corp. is considering two alternative production methods. The costs and lives associated with each are shown in the following

 Question 7 (10 marks) Honey Well Corp. is considering two alternative

Question 7 (10 marks) Honey Well Corp. is considering two alternative production methods. The costs and lives associated with each are shown in the following table. Ignore depreciation and taxes in answering. The required rate of return is 12%. If Honey Well replaces the equipment, which method should it buy? (Round your final numbers to the nearest dollar)

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