58) Mountain Fresh Water Company is considering two mutually exclusive machines. Machine A has an up-front cost of $100,000 (CF₀= -100,000), and it produces positive after-tax cash inflows of $40,000 a year at the end of each of the next six years. Machine B has an up-front cost of $50,000(CF₀= ?50,000), and it produces after-tax cash inflows of $30,000 a year at the end of the next three years. The company's cost of capital is 10.5%. Based on the equivalent annual annuity, which machine will be chosen?

a.A for $16,702b.

B for $23,954

c.Afor$71,687

d.B for $9,718