Question: You need to choose between two machines based on the following information: Machine 1 has a 4 year life, costs $ 3 2 2 ,
You need to choose between two machines based on the following information: Machine has a year life, costs $ with pretax operating costs of $ per year. Machine has a year life, costs $ with pretax operating costs of $ per year. Both machines have a salvage value of $ and are classed with a CCA rate of per year. The company tax rate is and the discount rate is
a What is the EAC?
b Which machine would you select as an investment?
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