Solve the EAC for a machine that costs 72,500 and has a 5-year life span, annual operating cash flow (after-tax) of -$11,800 per year. the second machine costs $99000, and has a 7-year life, annual OCF (after-tax) of -$9800 per year. the discount rate is 12%. What is the machine's EAC?

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Calculate the Equivalent Annual Cost EAC for each machine For the first machine Initial Co... View the full answer