A startup aerospace company is evaluating two alternatives: the purchase of an automaticfeed machine and a manualfeed machine for a finishing process. The autofeed machine has an initial cost of $23,000, an estimated salvage value of $4,000, and a predicted life of 10 years. One person will operate the machine at a rate of $12 per hour. The expected output is 8 tons per hour. Annual maintenance and operation cost is expected to be $3,500.

The alternate manualfeed machine has a first cost of $8,000, no expected salvage value, a 5year life, and an output of 6 tons per hour. However, three workers will be required at $8 per hour each. The machine will have an annual maintenance and operation cost of $1,500. All projects are expected to generate a return of 10% per year. How many tons per year must be finished to justify the higher purchase cost of the autofeed machine?

Show all work including the cash flow diagram for each alternative using EXCEL