Question: Two machines, A and B, which perform the same functions, have the following costs and lives. Type Initial cost Annual maintainence cost Life A 6200

Two machines, A and B, which perform the same functions, have the following costs and lives.
Type Initial cost Annual maintainence cost Life
A 6200 500 5
B 6700 650 7
The two machines are mutually exclusive and the cost of capital is 10 percent.
Which machine would you choose?

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