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Business, 15.11.2019 18:31 meowmeowcow

Lc corp. has an old machine with variable costs of $164,200 per year. lc is looking at two replacement options. option a costs $210,000 and has $118,000 per year in variable costs. option b costs $216,000 and has $114,400 in per year variable costs. all machines have a six year life. the old machine will sell for $19,200. which of the following lists lc’s options from least costly to most costly?

a : retaining the old machine is least costly, followed by option b, then option a.
b : option b is least costly, followed by option a, then retaining the old machine.
c : retaining the old machine is least costly, followed by option a, then option b.
d : option a is the least costly, followed by option b, then retaining the old machine.

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