Refer to the information given in the preceding problem. As the Micro Technology Division manager, you are still assessing the problem of whether to acquire Klondike Machine Company’s machine. You learn that the new machine could be acquired next year, but it will cost 15 percent more then. Its salvage value would still be $100,000. Other costs or revenue estimates would be apportioned on a month-bymonth basis for the time each machine is in use. (Ignore fractions of months.)

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?