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Business, 29.03.2021 20:20 omqliz05

Your company must replace an old machine. There are two o ers: Purchase price Variable unit cost Fixed cost/yr Life span Salvage value Machine A 480,000 0.12 100,000 8 None Machine B 200,000 0.25 75,000 4 None Company uses SL depreciation. Corporate tax rate is 40%. Discount rate is 12%. (a) Which machine is best if the annual production quantity Q is 1 million units

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