You are considering the purchase of one of two machines, Financial Management

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You are considering the purchase of one of two machines

You are considering the purchase of one of two machines used in your manufacturing plant. Machine A has a life of two years, costs $110 initially, and then $155 per year in maintenance costs. Machine B costs $180 initially, has a life of three years, and requires $130 in annual maintenance costs. Either machine must be replaced at the end of its life with an equivalent machine.

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