1 Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following: 10 points 04:43:52 eBook Print References Machine A could be purchased for $27,000. It will last 10 years with annual maintenance costs of $900 per year. After 10 years the machine can be sold for $2,835. Machine B could be purchased for $22,500. It also will last 10 years and will require maintenance costs of $3,600 in year three, $4,500 in year six, and $5,400 in year eight. After 10 years, the machine will have no salvage value. Required: Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Ignore income tax considerations. Calculate the present value of Machine A & Machine B. Which machine Esquire should purchase? Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Machine A Machine B Esquire should purchase PV Check

Esquire Company needs to acquile a molding machine fo be used in its manufacturing process. Two types of machines that would be appropriate ate presently on the market. The company has determined the following Machine A could be purchased for $27,000 it will last 10 years with annual maintenance costs of $900 per yeak Afer 10 years the machine can be sold for $2,835 Machine 8 coufd be purchased tor $22,500. In also will last 10 years and will requie maintenance costs of $3,600 in year three. $4,500 in year six and $5,400 in year eight. After 10 years, the machine will have no salvage value. Required: Assume an interest rate of 8% properly rellects the time valise of money in this stuation and that mainterance costs are pald at the end of each yeat. Ignore income tax considerations Celculate the present value of Machine A \& Machine in. Which machine Escuire should purcturse? Note: Negotive omounts should be indicoted by a minus sign. Do not round intermediote coleuletions. Round your final answers to EYADotses