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Machine X has an upfront cost of $364,500 and annual operating costs of $11,025 over its...

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

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