Consider the following problem.

A company (that is highly successful and annual profit is between 3 million and 5 million) is considering purchasing two machines. Below are the costs regarding these two machines.

Machine A B

Cost of Machine $70,000 $130,000

Shipping/installation costs $10,000 $10,000

Annual Receipts $90,000 $90,000

Annual Disbursement $60,000 $35,000

Life of the machine 6 years 4 years

Salvage Value at end

of life $3000 $10,000

MARR 10%

1. What is the best choice based upon ERR in Excel?
2. What is the best choice based upon Benefit to Cost in Excel?
3. What is the best choice based upon discount payback period in Excel?
4. Assuming taxes are 40% and both machines have a MARCS depreciation of 7 years, which machine is better.
5. Comment on any additional criteria that may influence your decision?

Please show all the excel formula with answer