Question: X Ltd has to replace its machine and the production manager has to decide between Machine A and Machine B. Machine A is having installation

X Ltd has to replace its machine and the production manager has to decide between Machine A and Machine B. Machine A is having installation cost of 160 and annual electric bill 200. Machine B has installation cost of 760 and annual electric bill of 80. If both have life of 8 years which machine will you recommend if interest rate is 9 %? P/V factor @ 9 % for 8 years is 5.5348

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