1. One of two machines, Gamma and Delta, is to be purchased to provide for a for a new production operation in a factory. Machine Gamma costs $40,000 and machine Delta $60,000. However, machine Delta will result in an annual savings in operating costs of $3,000 over machine Gamma. Each machine has a useful life of 8 years and will be worthless at the end of 8 years. Money is valued at an effective annual interest rate of 8.5%. Assume two significant figures. Which machine would you recommend purchasing and why?