Question: You are going to replace a machine that is obsolete, and to do so you must choose between machines A and B shown in the

  • You are going to replace a machine that is obsolete, and to do so you must choose between machines A and B shown in the following table. Based on the methodology of the Equivalent Uniform Annual Cost, determine which of the two machines is more convenient to buy.

You are going to replace a machine that is

Investment Cost Annual Operating and Maintenance Cost Maintenance Salvage Value (Machine Sale) Annual Revenue Produced Useful Life Time Rate: 10% per year Machine A 150.000 10.000 75.000 20.000 3 Machine B 150.000 15.000 80.000 20.000 5

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