Answer is below but please show all calculations by hand.

Student Name: Student Number: 8. (8 marks) Your company is considering replacing a piece of equipment and has the choice between 2 models. Model A costs $45,000 and has a useful service life of 3 years with annual maintenance costs of $2,000. Model B costs $90,000 and has a useful life of 5 years with annual maintenance costs of $1,000. The annual profits from model A will be $25,000 while the annual profits for model B will be $30,000. Which model should you choose if your company's MARR is 8% for equipment? (you plan to be in business for many years and will need this equipment) Choose B (NPW or AEW is greater) For A: NPw 47,406.60 or AEw 5,538.49 For B: NPW 55,284.98 or AEW 6,458.92