Additio ARR Additional Exercise CK Company would like to purchase the molding machine. It has two alternatives: MC008 and MC009. Both machines have equal useful life, 7 years. The information of two machine are as follows. MC008 M009 Initial Cost $440,000 $220,000 Residual Value $20,000 $10,000 Annual Cash Inflow $140,000 $80,000 Annual Cash outflow $40,000 $10,000 (exclude repairing, overhaul and tax) $4,000 Repairing at the end of year 2 $12,00 Overhaul at the end of year 3 Assume tax rate is 20% Required: Calculate PB and ARR and identify which model of mol ding machine should selected