A machine costs 100,000. The revenue stream is 30,000 per year. It has operating expenses which are 5,000 the first year and increase by 1000 dollars each year until t = 12.

The machine is then sold for 40,000 This is compared with a second machine whose cost is 60,000. It has a revenue stream that begins at t = 1 at 20,000 and increases each year by 2,000 until t = 12.

Operating expenses begin at 3,000 per year and increase each year by 500 dollars per year until t = 12. salvage value is 3,000.

Compare the two machines using Future Worth.