7-41. Two alternative machines will produce the same product, but one is capable of higher-quality work, which can be expected to return greater revenue. The following are relevant data:

Machine A Machine B Capital investment $25,000 $40,000 Life 10 years 6 years Terminal BV (and MV) $2,000 $0 Annual receipts $160,000 $200,000 Annual expenses $140,000 $180,000 Determine which is the better alternative, assuming repeatability and using SL depreciation, an income-tax rate of 40%, and an after-tax MARR of 8%. (7.9)