9. 5.20 The TT Racing and Performance Motor Corporation wishes to evaluate two alternative machines for NASCAR motor tune-ups.

(a) Use the AW method at 9% per year to select the better alternative.

(b) Use spreadsheet single-cell functions to find the better alternative.

Table Summary: A table divided into 3 columns summarizes estimates for two different machines. The column headers are marked from left to right as: Machine;

R; and S.

Machine R S First cost, $ −250,000 −370,500 Annual operating cost, $ per year −40,000 −50,000 Life, years 3 5 Salvage value, $ 20,000 20,000