### Comparison of Alternatives

2012-8-23u2002·u2002machine X machine Y initial cost $6000 $12,000 estimated life 7 years 13 years salvage value none $4000 annual maintenance cost $150 $175 Problem 2 What is the approximate equivalent uniform annual cost of machine X? (A) $1000 (B) $1120 (C) $1190 (D) $1300 Solution The approximate equivalent uniform annual cost is

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