Exercise 6.11: Zena Products, Inc. is considering two machines U and V. Machine U costs $135,000 and lasts five years.
Today a similar machine used for two years costs $75,500. The salvage value for a similar machine today is estimated to be
$43,500 at the end of its life of five years.
Machine V costs $234,000 and lasts six years. The salvage value for a similar machine today is estimated to be $52,400
at the end of its life of six years. Machine U has first year estimated costs of $11,500 and benefits of $44,900.
Machine V has a first year estimated costs of $14,500 and benefits of $64,600. Inflation is 3% per year and the MARR
the company uses is 9% per year. All costs and benefits are estimated to grow over the project life of 12 years at the
rate of inflation. What are the NPW and EUAW values for the two machines?
Given data
	Machine U	Machine V
Initial Cost	$135,000	$234,000
Life in years	5	6
Salvage value	$43,500	$52,400
Benefits for 1st year	$44,900	$64,600
Costs for 1st year	$11,500	$14,500
Inflation rate (for all costs)	3%	3%
MARR [p.y.]	9%	9%
Benefits increase [p.y.]	3%	3%