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What are effective annual cost for machine

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Reference no: EM133176727

Iron Chef Ovens cost $3500 to purchase, result in electricity bills of $350 per year, and last for 8 years. Luxury Ovens cost $5000, result in electricity bills of $300 per year, and last for 10 years. The discount rate is 12%. What are Effective Annual cost for each machine and which one is more cost effective?

Reference no: EM133176727

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