1. Ten years ago, a company purchased a CNC milling center for $285,000 to replace the old milling machine. The manager anticipated a salvage value of $40,000 after 10 years. During this time his average annual revenue totaled $52,000. (a) Did he recover his investment and a 12% per year return? (b) If the annual M&O cost was $10,000 the first year and increased by a constant $1000 per year, was the AW positive or negative at 12% per year? Assume the $40,000 salvage was realized.