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Two Machines, a and B, Which Perform the Same Functions

Question 50

Multiple Choice

Two machines, A and B, which perform the same functions, have the following costs and lives. Two machines, A and B, which perform the same functions, have the following costs and lives. Which machine would you choose? The two machines are mutually exclusive and the cost of capital is 15%. A) Machine A as the EAC is $1789.89 B) Machine B as the EAC is $1922.88 C) Don't buy either machine D) Accept both A and B Which machine would you choose? The two machines are mutually exclusive and the cost of capital is 15%.


A) Machine A as the EAC is $1789.89
B) Machine B as the EAC is $1922.88
C) Don't buy either machine
D) Accept both A and B

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