Acc560 Managerial Accounting: E12-3 TLC Corp. is considering purchasing one of two new

Acc560 Managerial Accounting

E12-3
TLC Corp. is considering purchasing one of two new diagnostic machines. Either machine would make it possible for the company to bid on jobs that it currently isn't equipped to do. Estimates regarding each machine are provided below.
Machine A Machine B
Original cost 78,000 190,000
Estimated life (years) 8 8
Salvage value - -
Estimated annual cash inflows 20,000 40,000
Estimated annual cash outflows 5,000 9,000
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