You are considering two different stirring machines for your goat cheese factory. Both meet your performance...

You are considering two different stirring machines for your goat cheese factory. Both meet your performance requirements but differ as tabled below. If you anticipate remaining in business for at least 15 years, and your discount rate is 4%, which machine should you select? Assume no taxes. Machine A Machine B Acquisition cost $40,000 $65,000 Yearly operating cost $10,000 $9,000 Useful Life 3 years 5 years

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I HAVE USED HERE "EAC" CONCEPT. WE CAN ALSO USE "REPLACEMENT CHAIN APPROACH", BUT AS IT IS JUST ASKED WHICH MACHINE TO BUY, "EAC" METHOD IS APPROPRIATE

jeff jeffy answered 3 weeks ago

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