An industrial firm can purchase a special machine for $50,000. A down payment of $5,000 is required, and the unpaid balance can be paid off in five equal year-end installments at 7% interest. As an alternative, the machine can be purchased for $46,000 in cash. If the firms MARR is 10%, use the annual equivalent method to determine which alternative should be accepted.

Please do not copy from Chegg. Only attempt if you are sure about the answer. Solve in a step by step manner, explaining each step.