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1 You own a Sweet making business and you need to buy a new mixing machine. You have two choices, one of which is

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1 You own a Sweet making business and you need to buy a new mixing machine. You have two choices, one of which is expected to last three years and the other five. They have differing costs and maintenance structures as per the table below:- Year Sugar Dream Calorie Counter 0 2,600 3,400 1 200 100 2 400 100 3 200 100 4 100 Your company can borrow at 10%. Which machine do you purchase? (10) 5 100

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