1) Your company wants to purchase a continuous asphalt road building machine to modernize its equipment Two machines are being considered. Using the Benefit to Cost Method, determine which machine should be selected at i-6%. (40 Points) Machine A SDollars Machine B SDollars Initial investment Annual Maintenance Cost 325.000 45.000 400,000 32.000 Rebuild Cost yrs 3, 6, & 9 10,000 Initial Investment Annual Maintenance Cost Rebuild Cost yrs 5 & 8 Annual Revenue Disbenefits 12.000 425.000 Annual Revenue Disbenefits 400,000 + G - $10,000/yr 10,000 (Storage Addition) at Luro Life = Ten Years Life - Ten Years QUE vear 3-0.840 = $$400 JPU onnel discont 7.360 y5=0.7478964 Machine of $3017600 PU=A+(1+r)-n yo = 0.705 - 7050 Machine B-$3:25000 yg -,0627 - 7524 r- 6% n=1 Oyers B-C ration yq=0.52 8920 Machine A = 4.39 Machine 13=2.797 Machine B #652,008 2) What is the Payback Periods for A and B in problem No. 1 (25 Points)? Putotal cost = Machine A $687,570