An international textile companys North America Division must decide which type of fabric cutting machines it will usea straight knife or a round knife. The estimates are summarized below. Compare them on the basis of annual worths at i = 14%.

	Round Knife	Straight Knife
First Cost	$-300,000	$-170,000
AOC, per Year	$-34,000	$-34,000
Overhaul in Year 2		$-34,000
Salvage Value	$34,000	$15,000
Life	6 years	4 years

Which straight knife round knife type of fabric cutting machine will be used by the company.