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3. You may find the information of two machines below; Machine new machine used machine First Cost 40,000 25,000 Annual Operation Cost 7,000 8,000 Overhaul

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3. You may find the information of two machines below; Machine new machine used machine First Cost 40,000 25,000 Annual Operation Cost 7,000 8,000 Overhaul every 5 years 2,000 Salvage Value 38,000 4,500 Life, Years Which machine is recommended if interest rate is 10% per year? ( any method(20 mins). 6

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