Multiple Choice
You are evaluating two different machines.Machine A costs $10,000,has a five-year life,and has an annual OCF (after tax) of −$2,500 per year.Machine B costs $15,000,has a seven-year life,and has an annual OCF (after tax) of −$2,000 per year.If your discount rate is 14 percent,using EAC which machine would you choose?
A) Machine A
B) Machine B
C) Both machines A and B
D) Neither machine A nor B
Correct Answer:
Verified
Correct Answer:
Verified
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