An international textile company's North America Division must decide which type offabric cutting machines it will use-a straight knife or a round knife. The estimates aresummarized below. Compare them on the basis of annual worthsati= 15%.

Round Knife, Straight Knife First Cost$-350,000,$-210,000AOC, per Year$-42,000,$-42,000Overhaul in Year 2 is 0,$-20,000Salvage Value$42,000,$8,000Life6 years4 years

type offabric cutting machine will be used by the company.