Evaluate Trade-offs in Return Measurement: As a division manager of HI-TECH. Inc. (problem 22-30), you are still assessing the problem of whether to acquire the Mammoth Machine Company's machine. You learn that the new machine could be acquired next year. However, if you wait until next year, the new machine will cost 15 percent more than this year's price. The salvage value would still be $100,000. Other costs or revenue estimates would be apportioned on a month-by-month basis for the time each machine is in use. Fractions of months may be ignored.

Required:

a. When would you want to purchase the new machine if you wait until next year?

b. What are the costs that must be considered in making this decision?