A firm is considering the purchase of a new machine to increase the output of an existing production process. If each of these machines provides the same service over their useful lives and the MARR is 15%, Alternative A Alternative B Initial Investment $14,000 $65,000 Annual Cost $14,000 $9,000 Market Value at $8,000 $13,000 End of Useful Life Useful Life a) Which machine would be selected on the basis of cepeatability assumption? b) Using co-terminated assumption with a 5 year study period (compute imputed market value for alternative B), which alternative is preferred? c) If perpetual service life is assumed, which of these alternatives do you recommend? 5 years 20 years A firm is considering the purchase of a new machine to increase the output of an existing production process. If each of these machines provides the same service over their useful lives and the MARR is 15%, Alternative A Alternative B Initial Investment $14,000 $65,000 Annual Cost $14,000 $9,000 Market Value at $8,000 $13,000 End of Useful Life Useful Life a) Which machine would be selected on the basis of cepeatability assumption? b) Using co-terminated assumption with a 5 year study period (compute imputed market value for alternative B), which alternative is preferred? c) If perpetual service life is assumed, which of these alternatives do you recommend? 5 years 20 years