Selecting the most economical machine to purchase


Question: A company will purchase one of two machines lested below. based on a life of 10 years, which machine should be selected?

                Additional Investment          Increase in
                      required                     Annual income

Machine 1              $8,000                        $910
Machine 2             $15,500                      $1400

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Macroeconomics: Selecting the most economical machine to purchase
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