What machine is most profitable

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Reference no: EM132203872

Machine 1,3 year life - $350,000 operating costs of $75,000 a year

Machine 2, 5 year life -$500.000 operating costs of $37,500 per year.

Both machines - salvage value of $25,000 and classified with CCA rate of 20% per year. Company tax rate is 32%

Discount rate is 12%.

What is the EAC?

What machine is most profitable?

Reference no: EM132203872

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