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5) You purchase a machine for $80,000 now, with a salvage value of $25,000 in 10 years. The machine will have O&M costs and cost

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5) You purchase a machine for $80,000 now, with a salvage value of $25,000 in 10 years. The machine will have O&M costs and cost of raw goods totaling $30,000 per year. The machine will produce 5,000 high-quality parts per year. If i = 9% annual rate compounded annually, what is the cost per high-quality part produced? Answer 6) You can choose between two purchases: Machine A or Machine B. Machine A costs $22,000 and has a salvage value of $9,000 after 3 years. Machine B costs $30,000 and has a salvage value of $16,000 after 4 years. You can lease a Machine B equivalent for $6,000 per year, if you initially purchased Machine B. You need a machine for a total of 6 years, and can purchase a new machine in the future at the same price with the same salvage value. If i is 9% annual rate compounded annually, which machine should be purchased? Show work and justify

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