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6) A company is deciding between two machines which do the same task but cost different amounts. Machine A costs $40,000 and lasts 6 years
6) A company is deciding between two machines which do the same task but cost different amounts. Machine A costs $40,000 and lasts 6 years and generates yearly savings of $8,000, $14,000, $13,000, $12,000, $11,000 and $10,000. Machine generates annual cost savings of $7,000, $13,000 and $12,000. The discount rate is 11.5% and taxes equal zero. You advise the CEO to: costs $20,000, lasts 3 years and a. Select Machine A because it generates $507 more value per year than Machine B. b. Select Machine A because it generates $1,774 more value per year than Machine B. c. Select Machine B because it generates $507 more value per year than Machine A. d. Select Machine B because it generates $1,774 more value per year than Machine A
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