Time the value of the machine


Machine A costs $10,000 and will last five years, at which time the value of the machine is $1,000. Machine B costs $14,000 and will last 7 years, after which the machine is worth $2,000. You can lease a Machine B (only if you purchased one initially) for $3,000 per year. You need a machine for 10 years, and either machine can be repurchased in the future for the same price. Which machine should you purchase (show your work).

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Mathematics: Time the value of the machine
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