Doodads R Us Company needs thingamabobs to insert into the doodads it manufactures. It can purchase thingamabobs in bulk at $150 each or it can purchase a doodad manufacturing machine. If it purchases the machine, it will have an initial cost of $145,000 as well as annual costs of $9000 and operating costs of $35 per doodad produced. MARR is 12%.

Use annual worth analysis to determine which whether to buy the machine if:

a. annual needs are 200 doodads per year

b. annual needs are 500 doodads per year