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QUESTION
Lawrenceburg Machine Co. makes a laser cutting machine that sells for $125,000. Its lifetime operating costs are $75,000. Pulaski Machine Co.
Lawrenceburg Machine Co. makes a laser cutting machine that sells for $125,000. Its lifetime operating costs are $75,000. Pulaski Machine Co. has designed a competitive machine whose lifetime operating costs are $50,000. Aside from these differences, other costs or gains are the same for either machine. Lawrenceburg's laser cutters costs $100,000 to manufacture. Pulaski's cutter costs $90,000 to manufacture. What is the EVC for Pulaski Machine Co's cutter?
