Business, 13.04.2021 01:00 lopez5628

XPTO Inc. has to buy a new machine. There are two options: Brand A: machine costs $12,771 and is expected to have a scrap value of $7,209 whenever it is retired. Operating and Maintenance costs are $1,492 for the first year and expected to increase by $1,997 thereafter. Brand B: machine costs $12,141 and is expected to have a scrap value of $7,143 whenever it is retired. Operating and Maintenance costs are $1,850 for the first year and expected to increase by $1,448 thereafter. If the MARR is 10%, determine the minimum equivalent uniform annual cost associated with the optimal economic life of the machine that offers the lowest EUAC. The service life of each machine is 4 years. Note: round your answer to two decimal places, and do not include spaces, currency signs, plus or minus signs, nor commas.

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XPTO Inc. has to buy a new machine. There are two options: Brand A: machine costs $12,771 and is exp...