1. A company is considering buying one of two new bottle capping machines. One of the alternatives (an expected life of 20 years) is from the Caps-R-Us company. The other (an expected life of 10 years) is from the One-Top-Fits-All company. One of the two must be purchased, and neither is expected to have a salvage value at the end of its respective life. Present Worth Analysis will be utilized in making the decision. Fortunately, the alternative from the Caps-R-Us company has already been calculated for you. It was found that Present Worth of the Costs was $575,000 (based on its 20 year life). For the One Top Fits All alternative, the following characteristics are known: The initial cost of the machine is $320,000 and has a ten year life. Yearly operating and maintenance costs are expected to be $7,000 per year for the first seven (7) years and $10,000 per year for the last three (3) years. The machine requires a major overhaul costing $55,000 at the end of the fifth year of service. Based on Present Worth Analysis, decide between these alternatives. Assume that the benefits for each alternative are identical. MARR = 7%. (35.5)

Please show the factors when calcuating, e.g. p/a, p/f, etc.

The answer is $623,355 for the cost of One Top Fits All, the choice is Caps-R-us due to lower cost. I just don't know how to get there.