5 years ago, a multi-axis NC machine was purchased for the express purpose of machining large, complex parts used in commercial and military aircraft worldwide. It cost $350,000, had an estimated life of 15 years, and O&M costs of $50,000 per year. It was originally thought to have a salvage value of $20,000 at the end of 15 years but is now believed to have a remaining life of 5 years with no salvage value at that time. With business booming, the existing machine is no longer sufficient to meet production needs. It can be kept and supplemented by purchasing a new, smaller Machine S for $ 195,000 that will cost $ 34,000 per year for O&M, have a life of 10 years, and salvage value of $ 195,000(0.84) after tyears. As an alternative, a larger, faster, and more capable Machine L can be used alone to replace the current machine. It has cash price without trade-in of $ 470,000, O&M costs of $ 76,000 per year, salvage value of $ 470,000(0.8t) after tyears, and a 15 year life. The present machine can be sold on open market for a maximum of $70,000, MARR is 15%, and the planning horizon is 5 years. a. Clearly show the cash flow profile for each alternative using a cash flow approach (insider's viewpoint approach). Provide cash flow for year t=0, 3 and 5. Machine NC & S Machine L t Cash flow Cash flow $ 230000 $ $ 390000 1 $ 83000 $ 70000 2 $ 83000 $ 70000 3 $ 83000 $ 70000 4 $ 83000 $ $ 70000 5 $ 7634 $ 80733 b. Using an EUAC and a cash flow approach (insider's viewpoint approach), decide which is the more favorable alternative. 1. EUAC of the combination of multi-axis NC machine and machines $ 149780 14770 2.EUAC of the machine L $ 180153 3.Favorable alternative: Machine NCES c. Clearly show the cash flow profile for each alternative using an opportunity cost approach (outsider's viewpoint approach). Provide cash flow for yeart-0,3 and 5. Machine NC &S Machine L Cash flow Cash flow t 0 300000 $ 390000 1 $ 83000 $ 70000 2 83000 $ 70000 3 83000 $ 70000 4 83000 $ 70000 5 7634 $ 80733 d. Using an EUAC comparison and an opportunity cost approach (outsider's viewpoint approach), decide which is the more favorable alternative. 1. EUAC of the combination of multi-axis NC machine and machines 173186 $ 2. EUAC of the machine L $ 180153 3. Favorable alternative: Machine NCES Do all computations to 5 decimal places and round final answers to two decimal places. The tolerance is + 10