12.16 Lavender Plantations Pty Ltd is contemplating acquiring a new machine to be used for a relatively short period until its new factory is built with computerised equipment installed. Two machines are being investigated. Machine A B Cost ($) 95000 140000 Cost savings - year 1 35000 42500 Cost savings - year 2 38000 50000 Cost savings - year 3 43000 57500 Salvage value - end year 3 58500 72500 Calculate the ARR of each machine. Which machine would you recommend