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Machine X has an upfront cost of $424,500 and annual operating costs of $12,825 over its...

Machine X has an upfront cost of $424,500 and annual operating costs of $12,825 over its 4-year life. Machine Y costs $385,000 upfront and has annual operating costs of $6,220 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 16.25% for both machine, what is the absolute value of the dollar difference between the EACs of the two machines?

Question 11 options:

$12,079

$12,406

$12,732

$13,059

$13,385
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