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Fox and Minnie Ltd is analyzing two machines to determine which one it should purchase. These projects are mutually exclusive.

Fox and Minnie Ltd is analyzing two machines to determine which one it should purchase. These projects are mutually exclusive. The company requires a 14% rate of return and uses straight-line depreciation to a zero book value. Machine A has a cost of $290,000, annual operating costs of $8,000, and a 3-year life. Machine B costs $180,000, has annual operating costs of $12,000, and has a 2-year life. Which machine should Fox and Minnie Ltd purchase and why? (Round your answer to whole dollars.)

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