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FinanceQ&A LibrarySMU Inc. is considering two potential machines to produce their Mustang logo hats forever. The red machine has an equivalent annual cost of $75,000 per year. The blue machine would cost $100,000 to purchase, would cost $20,000 each year to maintain, and would last for 10 years. At the end of year 10, the blue machine could be sold for $10,000. Assume the appropriate discount rate is 10% and ignore taxes. What is the equivalent annual cost of the blue machine, and which machine should the company choose? $85,432... choose Blue Machine EAC blue machine Blue Machine EAC $82,390... choose red machine $35,647 ... choose Blue Machine EAC blue machine $15,783... choose Blue Machine EAC blue machineQuestion

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