Two machines are being considered to do a certain task. Machine A costs $24 000 new and $2 600 to…

Two machines are being considered to do a certain task. Machine A costs $24 000 new and $2 600 to operate and maintain each year. Machine B costs $32 000 new and $1 200 to operate and maintain each year. Assume that both will be worthless after eight years and that the interest rate is 10.0%. Determine by the equivalent uniform annual cost method which alternative is the better buy.

 

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