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4. A dentist is deciding between two X-ray machines for his new office. Estimated costs for each machine are the following: Machine A B

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4. A dentist is deciding between two X-ray machines for his new office. Estimated costs for each machine are the following: Machine A B Installed cost $36,000 $38,000 Annual maintenance cost $1,250 $950 Market Value at year 6 $5,750 $6,250 Useful life 5 years 5 years Which machine should be recommended? Use a MARR of 8% and a study period of 5 years.

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