8. Company X is comparing machines to determine which one to purchase. The machines si tot differing prices, have differing operating costs, differing machine lives, and will be replaced when wom out. These machines should be compared using A. net present value only. B. both net present value and the internal rate of return. C. their equivalent annual costs. D. the depreciation tax shield approach. E the replacement parts approach. 9. Company Y is considering buying a machine. The cost of the machine is $850,000. It also costs $10,000 per year to operate. The machine has a life of 3 years before it is replaced. What is the equivalent annual cost of this machine if the required return is 9%? (assuming no depreciation and no taxes) A. S325,797 B. S340,002 C. $345,797 D. $347.648 E. $351,619 For Questions 10-16 Company A is looking at a project that will require $80.000 in fixed assets and another $20,000 in net working capital. The project is expected to produce annual sales of $110,000 with associated costs of $70,000 per year. The project has a 4-year life. The company uses straight- line depreciation to depreciate the fixed assets to a zero book value over the life of the project. The tax rate is 35% 10. What is the amount of net capital spending (NCS) in Year 0? A. $20,000 B. $40,000 C. $80,000 D. $100,000 11. What is the amount of the change in net working capital (ANWC) in Year 0? A. $20,000 B. S40,000 C 580,000 D. $100,000