In: Finance
Machine X has an upfront cost of $364,500 and annual operating
costs of $11,025 over its 4-year life. Machine Y costs $345,000
upfront and has annual operating costs of $5,580 over its 3-year
life. Whichever machine is purchased will continue to be replaced
at the end of its useful life. If the required return is 14.25% for
both machine, what is the absolute value of the dollar difference
between the EACs of the two machines?
Question 11 options: $16,237
$16,688
$17,139
$17,590
$18,041