13-18: A company purchased a machine six years ago for SR 200,000. The machine will be in service for additional five years. It will have operating and maintenance cost of SR 30,000 per year, and it can be sold at SR 10,000 by the end of the five years. The current market value of the defender is SR 20,000. A new machine is being considered as a replacement for the old machine. The new machine will cost SR 120,000 and it will worth SR 25,000 after five years. The needed operating and maintenance cost equal to 1000 gradient serious on a SR 1000 base. The equipment supplier offers to allow a SR 30,000 trade-in for the old machine. An employee knows a company that is willing to lease them a machine with the same standards, and it will cost SR 25,000 per year, payable at the beginning of the year, and this machine will have operating cost of SR 4,000 per year (payable at the end of the year). As an engineer, using MARR of 10%, and opportunity cost approach answer the following questions using AW, Ranking method. 13) What is the annual worth of the old machine? A) SR -44,341 B) SR -33,638 C) SR-41,271 D) SR-38,221.21 14) What is the annual worth of the new machine? A) SR-35,071 B) SR -33,580 C) SR -38,564 D) SR -27,733 15) What is the annual worth of the leased machine? A) SR-25,000 B) SR-31,500 C) SR -5,000 D) SR -35,000 16) Based on the above, what is your recommendation? A) Keep the old machine B) Replace with a new machine C) Replace with the lease option D) There is no difference between leasing and buying the new machine